The S&P 500 and long-term bonds are both up more than 5% to start off 2019, marking just the 10th time since 1980 that stocks and bonds kicked off a year on such a strong note, according to data from Bespoke Investment Group. The data also shows the S&P 500 averages a gain of 11.3% when stocks and bonds get off to such a hot start.

Sharp gains in both equities and fixed income are unusual since rising bond prices — or declining yields — are usually seen as a signal that an economic slowdown looms ahead. Bonds are seen as a safe haven in times of economic turmoil. Stocks, meanwhile, usually produce much higher returns than bonds when the economy runs smoothly.

· European stocks traded cautiously higher Thursday morning as markets digested different messages on the possibility of a U.S.-China trade deal.

The pan-European Stoxx 600 nudged 0.2% higher at the start of the morning session, basic resources and banks both jumping more than 1%, while the food and beverages sector lost 0.6% in early deals.

· Asian share markets turned higher on Thursday following a media report the United States and China have tentatively agreed to a truce in their trade war, ahead of a closely-watched meeting between the two nations this weekend.

The South China Morning Post (SCMP), citing sources, said in Washington and Beijing were laying out an agreement that would help avert the next round of tariffs on an additional $300 billion of Chinese imports.

On Wednesday, U.S. President Donald Trump said a trade deal with his Chinese counterpart Xi Jinping was possible this weekend though he was prepared to impose tariffs on virtually all remaining Chinese imports if talks fail.

Hopes the world’s two biggest economies would finally reach an agreement were enough to cheer investors, sending MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.6%.

· Japan’s Nikkei rose on Thursday on hopes for progress in U.S.-China trade talks as investors cautiously awaited the outcome of the G20 summit this weekend.

The Nikkei share average ended 1.2% higher at 21,338.17 points.

Overall sentiment improved, with cyclical stocks and companies with large exposure to China in positive territory ahead of a meeting between U.S. and Chinese leaders on the sidelines of the G20 meeting in Osaka.

“The market’s main concern is whether the two countries land on some kind of deal which will determine the direction of U.S. monetary policy,” said Yoshinori Shigemi, a global market strategist at JPMorgan Asset Management.

· Chinese shares ended higher on Thursday as hopes rose that the United States and China could reach an agreement to prevent further escalation in their trade war, ahead of a meeting between leaders of the two countries this weekend.

At the close, the Shanghai Composite index was up 0.69% at 2,996.79, after two straight sessions of losses.

Reference: CNBC, Reuters