- Markets bounced back Thursday as fears of a full-scale global trade war waned.
- Several major European indexes were more than 2% higher in afternoon trading.
- US stocks also gained, with the Dow Jones up more than 200 points.
- Gains appear to be driven by conciliatory comments from President Donald Trump’s top economic adviser, Larry Kudlow.
- “Don’t overreact – we’ll see how this works out,” Kudlow said in an appearance on Fox Business.
- You can follow global equity markets here.
LONDON – Markets around the world were bouncing Thursday as fears of a full-scale global trade war were once again allayed by a more conciliatory approach from the US after an initially hostile stance.
Assets had dived Wednesday after China announced plans for a series of retaliatory tariffs against the US following the release Tuesday of a list of goods the US planned to levy tariffs on.
The US, however, expressed willingness to negotiate a resolution to the trade fight.
The calm seemed to be driven by Trump’s chief economic adviser, Larry Kudlow, who urged caution Wednesday during an appearance on Fox Business.
“Don’t overreact – we’ll see how this works out,” Kudlow said. “My view is, look, I’m a growth guy, I’m a Reagan supply-side growth guy. I think at the end of this whole process, the end of the rainbow, there’s a pot of gold.”
Those words seemed to soothe investors, with the Dow Jones industrial average ending Wednesday up almost 1% after diving more than 500 points in early trade.
That calm then moved to Asia and Europe, with European stocks jumping at Thursday’s open, and continuing to gain as the day progressed. US stocks then saw gains at the open, with the Dow Jones Industrial average up 200 points at 24,461, a gain of 0.8%, as of 3:35 p.m. BST (10:35 a.m. ET).
Here’s the European scoreboard as of about 3:35 p.m. BST (10:35 a.m. ET):
- Britain’s FTSE 100 – up 1.85% at 7,164 points
- Germany’s DAX – up 2.57% at 12,265
- France’s CAC 40 – up 2.36% at 5,263
- Italy’s FTSE MIB – up 2.10% at 22,914
- Spain’s IBEX 35 – up 2.15% at 9,718
“Buyers came back with a vengeance on Thursday,” Jasper Lawler, head of research at London Capital Group said.
“It was a complete one-eighty from Wednesday’s rout. The bounce-back attributed to White House economic advisor Larry Kudlow easing trade war fears has gained some traction. The DAX index hit a 2-week high while the FTSE 100 reached its highest in 3-weeks.”
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