- Global stock markets rallied Monday after President Donald Trump tweeted about “substantial progress” in trade talks with China. The Shanghai Composite Index soared 5.6%, its best one-day rally since 2015.
- “The US has made substantial progress in our trade talks with China on important structural issues,” Trump tweeted Sunday.
- “There’s nothing quite like kicking the can down the road for another day to deliver a sugar rush to markets,” one analyst said.
Stock markets around the world rallied Monday after President Donald Trump’s tweets about “substantial progress” in trade talks with China fuelled optimism about a resolution to the US-China trade war.
“I am pleased to report that the U.S. has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues,” Trump tweeted Sunday. “As a result of these very productive talks, I will be delaying the U.S. increase in tariffs now scheduled for March 1.”
His announcement came less than a week before the 90-day trade-war truce agreed to by Trump and Chinese President Xi Jinping was set to expire. As of this Friday, US tariffs on $US200 billion worth of Chinese goods were set to increase to 25% from 10%.
“There’s nothing quite like kicking the can down the road for another day to deliver a sugar rush to markets,” said Neil Wilson, the chief market analyst for Markets.com. “However, we must always caution that the US and China still need to work hard to secure a deal. This is an extension of the truce, not a peace treaty.”
Chinese and Trump administration officials have held three rounds of formal talks among high-level officials since the truce was agreed to in December. Chinese officials stayed over the weekend to continue talks in Washington, adding on two days to their original trip.
Here’s the roundup:
- The Shanghai Composite Index ended the trading session with its best close since July 9, 2015, up 5.6%.
- US futures tracking the Nasdaq and the Dow Jones Industrial Average were rallying at least 0.4%, while those for the S&P 500 were up 0.3%.
- European markets were also up: The Euro Stoxx 50 and Germany’s DAX were up at least 0.3%, while France’s CAC Index was up 0.1%.
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