Image Source: FXEmpire
Global equity markets rallied on Friday, driven by fresh hopes that the US and China are getting closer to ending their long-standing trade war. The rally comes on the back of news of a historic US-UK trade agreement and positive signals from Washington and Beijing before a decisive round of talks.
Key Highlights:
Market Rally: US indices rallied well, with the Dow Jones gaining 0.62%, S&P 500 rising 0.58%, and the Nasdaq rising 1.07%. European and Asian markets reflected the same fervor, with Germany's DAX nearing all-time highs and Japan's Nikkei 225 rising 1.32%.
Catalyst Events: The protest was triggered by the US-UK trade deal, which liberalizes tariffs on British cars and metals and unlocks UK markets to US farm produce. More significantly, President Trump dropped hints at easing the 145% tariff now levied on Chinese exports, bringing expectations of a deal in US-China trade relations.
Expected Speeches: Investors are keenly waiting for the next US-China talks in Switzerland, where both parties are likely to engage in reciprocal tariff cuts. Trump termed the talks as "substantive" and "friendly," further supporting market sentiment.
Risk-On Mood: The optimism created a broad-based risk asset rally. US tech giants such as Apple, Nvidia, and Tesla led the way, while safe havens like gold fell and oil prices recovered.
Analyst View: Market analysts observe that despite uncertainties, the mood has changed from confrontation to guarded optimism, with investors expecting a de-escalation to be in the offing.
With tense US-China negotiations in the offing, world markets are wagering on a new era of cooperation and expansion.
Sources: Channel News Asia, Euronews, Yahoo Finance, Barron's, Moneycontrol
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