European Shares Broadly Higher With DAX Up 1.10%
European markets rose on Tuesday after Chinese President Xi Jinping tried to reassure investors about the prospect of a full-scale trade war between the two largest economies of the world. The DAX index is trading at 12.397, up 1.10%, while the CAC having gained 0.69%.
Chinese President Xi Jinping said today he would open the country’s economy and lower import tariffs on automobiles. He also promised to enforce the legal intellectual property of foreign firms, which was a point of contention for U.S. President Donald Trump. The comments helped soothe investor worry over an escalating trade war between the two countries. However none of the comments made by Xi were new, and had been promised in some form or other in the past. Xi also did not give a time frame from when the new measures would take place.
The US Labor Department said its producer price index increased 0.3% last month. In the 12 months through March, the PPI rose 3.0%. Economists had forecast the PPI rising 0.1% last month and increasing 2.9% from a year ago. The so-called core PPI increased by 0.3% from a month earlier and rose 2.7% in the 12 months through March. This also raised speculation that March CPI’s due on Wednesday may rise as well. Forecasts are for the headline CPI to have risen to 2.4% y/y versus 2.2% the preceding month.