- World stocks rose on Thursday after President Donald Trump delayed a tariff hike on $US250 billion worth of Chinese goods for two weeks.
- “We have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th,” Trump tweeted on Thursday night.
- The concession followed China delaying duties on 16 specific US imports for a year, and comes ahead of trade talks in October.
- Traders will keep a close eye on the European Central Bank’s meeting today, as policymakers are expected to announce an interest-rate cut and stimulus package.
- View Markets Insider’s homepage for more stories.
World stocks rose on Thursday after Donald Trump delayed a planned tariff hike on $US250 billion worth of Chinese goods for two weeks. The US president described the move as a “gesture of goodwill” ahead of modern China’s 70th anniversary.
Traders are also optimistic about the outcome of the European Central Bank’s meeting today.
“At the request of the Vice Premier of China, Liu He, and due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th,” Trump tweeted on Thursday night.
Trump’s concession followed China delaying duties on 16 specific US imports for a year, and comes ahead of trade talks between the two nations in October.
“The gesture is constructive and follows China’s move to waive tariffs on some US goods,” Neil Wilson, chief market analyst for Markets.com, said in a research note. “But this is mere posturing, albeit it at least means we look to these October high-level discussions with a bit more optimism.”
“This is better than nothing,” Michael Every, senior Asia-Pacific strategist at Rabobank, said in a research note. “Yet getting a real deal done from here within the parameters both sides have set will be akin to threading a needle on the back of a galloping horse wearing thick riding gloves.”
ECB policymakers are expected to announce an interest rate cut and new stimulus package in response to weakening Eurozone economic data and Germany’s contraction last quarter, Hussein Sayed, chief market strategist at FXTM, said in a research note.
Here’s the market roundup as of 9:15 a.m. ET:
- European equities jumped with Germany’s DAX up 0.2%, and Britain’s FTSE 100 and the Euro Stoxx 50 up 0.3%.
- Asian indexes rallied with the Shanghai Composite up 0.8%, the China A50 up 1.4%, and Japan’s Nikkei up 0.8%.
- US stocks are set to open higher. Futures underlying the Dow Jones Industrial Average and S&P 500 climbed 0.2%, while Nasdaq futures rose 0.4%.
- Oil prices rose with West Texas Intermediate crude up 0.4% at $US56, and Brent crude up 0.3% at $US61.
- Gold slid 0.5% to around $US1,511.
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