The decision of the US President Donald Trump to postpone the increase in tariffs of Chinese imports supported the indexes worldwide and increased the hopes of investors for reaching a trade deal between the two economic giants.
“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”, wrote Donald Trump on Twitter. “As a result of these very productive talks, I will be delaying the U.S. increase in tariffs now scheduled for March 1. Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. & China!”, added he.
In March, the US President is expected to meet with Chinese leader in Donald Trump’s private residence in Florida to resolve the latest issues surrounding the talks.
Asian markets recap
The main stock indexes in the Asia-Pacific region ended the first session of the week on green territory after the US President Donald Trump said that significant progress has been made in the talks with Beijing, and postpones the increase of customs duties on imported Chinese goods.
On the Chinese markets, the continental index Shanghai Composite rose by 157.06 points, or 5.60%, to 2,961.28 points, which is its highest level since July 2018. The Hong Kong’s benchmark Hang Seng added 136.80 points to its value and ended the day at 28,953.10 points. The shares of smartphone maker ZTE rose by more than 2.3%.
In Japan, the blue-chip index Nikkei 225 rose by 102.72 points, or 0.48%, to 21,528.23 points. The shares of Fast Retailing, which is behind the Uniqlo chain of stores, rose by 0.65%.
The Australian S&P ASX 200 rose by 0.31% to 6,186.30 points. The shares of Westpac Banking Corp added 0.11% to their value.
In South Korea, Kospi expanded by 0.09% to 2,232.56 points with the stocks of Samsung Electronics appreciating by 0.42%.
European markets mid-session recap
The German benchmark DAX 30 is up by 47 points, or 0.41%, to 11,505.11 points at 11:15 GMT. Carmakers rallied as tariff worries eased. BMW climbed 1.3%, Daimler rose by 1.5% and Volkswagen advanced 2.6%. Daimler and BMW have agreed to form a joint venture that combines several of their existing mobility start-ups. The chemical giant Bayer edged up 0.7% as it faces a second US jury trial over allegations that its popular glyphosate-based weed killer Roundup causes cancer. The chemicals maker Covestro declined by 2.8% after reporting a sharp drop in earnings in the fourth quarter. Wirecard gained 2.5%, as the company said that it now offers customers of Twisto, Czech mobile payment provider, Apple Pay as a means of payment.
The French index CAC 40 was up by 23 points, or 0.45%, to 5,239.18 points in mid-session on Monday. Carmakers rallied with Renault jumped by 1% and Peugeot gained 1.2%, while car parts maker Valeo rose as much as 3.7%. The biopharmaceutical company Ipsen declined by 1.7% after announcing the acquisition of Clementia Pharmaceuticals in a deal valued at up to 1.3 billion USD.
Britain’s FTSE 100 edged higher as banks and mining companies gained on the US President Trump’s decision to delay raising tariffs on Chinese goods, while housebuilders fell on reports that Persimmon’s government house-funding scheme was under scrutiny from the country’s housing minister. The index FTSE 100 is up by 0.17% to 7,190.64 points.
Wall Street pre-session recap
Wall Street stock index futures pointed to a higher start to the trading day Monday after President Donald Trump announced a delay in trade tariffs on Chinese goods.
At 6:30 a.m. ET, Dow futures were up 163 points, pointing to a higher open of more than 145 points. Futures for the S&P and Nasdaq were also higher.
Today, a Chicago Fed National Activity Index is due at 8:30 a.m. ET, followed by wholesale trade figures and a Dallas Fed manufacturing survey at 10 a.m. ET.