USA markets soar as trade war fears subside

Marsha Scott
March 29, 2018

"The message over the weekend, though, was far less confrontational and suggested the US would be open to scrapping the tariffs in exchange for certain other concessions such as reduced tariffs on imported cars".

But China's premier Li Keqiang said on Monday that China and the United States should maintain negotiations.

The S&P 500 is down 3.2 perc ent for the year, while the Dow Jones Industrial Average has slid 4.2 per cent.

USA stocks tumbled on both Thursday and Friday last week after President Donald Trump unveiled tariffs on up to $60 billion of Chinese imports and vowed to counter China's alleged "theft" of American intellectual property.

"There are some tentative signs that fears of an escalation of trade tensions are beginning to ease", Craig Erlam, a market analyst at OANDA, wrote in a note to clients, Reuters reported.

"Equities are extending their rebound as investors breath a collective sigh of relief that a global trade war looks to be off the menu (China and U.S. negotiating, several exemptions)".

Tokyo-listed stocks in the semiconductor equipment maker Tokyo Electron closed up 2.9%, as did shares in robot maker Yaskawa Electric Corp.

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London's FTSE index had gained 1.8% in afternoon trade, while the Paris CAC was up 1% and the Frankfurt DAX rose 1.5%. As NPR's John Ydstie reports, the two countries have begun talks aimed at avoiding tit-for-tat sanctions that could damage both sides.

All three major USA indexes were up more than 2 percent on the heels of their worst weekly performance since January 2016.

U.S. President Donald Trump last week signed a memorandum that could impose tariffs on up to $60 billion of imports from China.

Mr Li's comments followed those made earlier by US Treasury secretary Steven Mnuchin, who told US media on Sunday he was "cautiously hopeful" that the US and China could come to an agreement on trade issues.

"Markets are caught in conflicting currents".

"The. trade war story. should be taken into account when trying to quantify the potentially bullish effect of the geopolitical element in oil markets", said analysts at consultancy JBC Energy. Eswar Prasad, a professor of trade policy at Cornell University, says President Trump's threat of 25 percent tariffs on a range of Chinese goods may have motivated the Chinese to offer concessions.

South Korea's benchmark share index rose 0.8 per cent. It lost three per cent last week.

Other reports by MaliBehiribAe

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