Markets rally on report China and US near deal to slash tariffs

Feng Li/ Getty Images
  • Global markets rallied Monday on a report that China and the US were in the “final stage” of a trade deal.
  • Washington and Beijing are offering to lower or remove tariffs on some products, The Wall Street Journal reported on Sunday.

Stock markets around the world rallied Monday after a report indicated China and the US were in the “final stage” of a trade deal.

The Wall Street Journal reported on Sunday that Chinese officials had offered to trim tariffs and other restrictions including on US farm, chemical, and auto products. Washington, The Journal said, is weighing removing “most, if not all,” sanctions on Chinese products.

Most major markets were in the green Monday morning.

“Reports over the weekend signal that the two sides are moving rather more rapidly to a deal than we maybe thought,” said Neil Wilson, an analyst at Markets.com.

“But with all this positivity comes the risk that the market is buying on this rumour mill and is becoming more exposed should the good news not materialise.”

The deal is the result of trade talks in February in Washington, The Journal said, citing people familiar with the discussions. The Journal added that the deal was not final.

Here’s the roundup:

  • US futures jumped on the news, with those underlying the S&P 500, the Dow, and the Nasdaq all rising at least 0.4% as of 8:50 a.m. in London (3:50 a.m. in ET).
  • China’s benchmark, the Shanghai Composite Index, gained 1.1%; Japan’s Nikkei added 1%; and the Hang Seng in Hong Kong rose 0.5%.
  • In Europe, the broad Euro Stoxx 50, Germany’s Dax, and the UK’s FTSE 100 all increased at least 0.3%.

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