Global Equities Recovered After US-China Trade Tensions Reducing

Forex News

Global stock markets rose today, amid weakening fears about the world trade war. In general, the main driver of market sentiment was the news that the US and China are open to discuss issues related to trade. This news came after increased tensions between the superpowers and fears of a potential trade war. The White House seeks to reduce tariffs on imported cars, and also asks China to allow foreign ownership of financial services by majority companies in exchange for not imposing higher prices on a number of imported Chinese goods. US Treasury Secretary Steven Mnuchin said he hopes that China would reach a deal to avoid tariffs on $50 billion of US exports.

The US futures pointed to a continuation of the gains on Tuesday. Asian shares latched on to the rekindled hopes with Japan’s Nikkei springing up 2.4%, its best day in three months. In China, Shanghai Composite gained more than 1%. European stocks followed suit with gains of more than 1% across the board.

The prospect of a trade war between the world’s two largest economies in the last couple of weeks had a strong impact on risk appetite, and the US stock markets faced significant losses last week, when the trade tension between the US and China was at its peak.

Today’s data showed, that German Import Prices fell by 0.6%, and marked the first decline since July. Eurozone economic sentiment indicator dropped to 112.6 from 114.2 in February, hitting its lowest level since September 2017.