Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Shares, dollar rebound on thaw in U.S.-China trade war

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/13/2019 | 08:32pm EDT
Passersby are reflected on an electronic board showing the exchange rates between the Japanese yen and the U.S. dollar and other market indices outside a brokerage in Tokyo

NEW YORK (Reuters) - U.S. and European stocks jumped, the dollar strengthened and Treasury yields rose on Tuesday after the United States said it would delay tariffs on some Chinese products, easing concerns that a protracted trade war would harm global growth.

President Donald Trump backed off his plan to impose 10% tariffs on Sept. 1 on remaining Chinese imports, delaying duties on cellphones, laptops and many other consumer goods in the hopes of blunting their impact on U.S. holiday sales.

Equity, debt and currency markets sharply reversed course minutes after Wall Street opened for trade on news from Hong Kong about a call Chinese Vice Premier Liu He held with U.S. officials, according to China's Commerce Ministry.

Liu spoke with U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin on Tuesday evening, a ministry statement said.

Shares of Apple Inc <.AAPL.O>, a likely beneficiary of the tariff delay, rose 4.5% and the information technology sector rose 2.46%, the biggest gainer among the 11 S&P 500 sectors.

Investors are closely watching the headlines and that is what markets are trading off of, said Candice Bangsund, a global asset allocation strategist at Fiera Capital in Montreal.

"The news today is obviously good news. Risk appetite has improved drastically but it's consistent with the environment of elevated uncertainty," Bangsund said.

Global growth should re-accelerate later this year as major central banks cut interest rates and recent economic data proves better than where markets have traded on it, Bangsund said.

The damage created by tariffs will not go away because economic uncertainly remains, said Kristina Hooper, chief global market strategist at Invesco in New York.

"We can continue in the situation we've been in for months which is one step forward, further into the trade war abyss, followed by one step or a half step backwards," Hooper said.

Wall Street rallied on news of the tariff delay.

The Dow Jones Industrial Average rose 372.54 points, or 1.44%, to 26,279.91. The S&P 500 gained 42.57 points, or 1.48%, to 2,926.32. The Nasdaq Composite added 152.95 points, or 1.95%, to 8,016.36.

Major stock bourses in Europe also surged, with the Euro STOXX index <.STOXX50E> of eurozone shares closing 0.92% higher.

Major equity indices had tumbled roughly 5% since late July on growing concerns that the ongoing U.S.-Chinese trade dispute would slam global growth and fester unresolved until after the November 2020 U.S. presidential election.

Markets also had slipped, with gold earlier hitting a more than six-year high, as the unrest in Hong Kong and a rout in the Argentine peso drove investors already rattled by the trade war into havens such as bullion, bonds and the yen.

The yen benefits in moments of geopolitical uncertainty and during economic downturns. The U.S. dollar rose 1.27% to 106.63 yen per dollar.

Yields on the benchmark U.S. 10-year Treasury notes hit session highs, while those on 30-year Treasury bonds rallied from more than three-year lows. Traders earlier were bracing for 30-year yields to sink to a record low below 2.08%.

The 10-year Treasury <US10YT=RR> fell 15/32 in price to push its yield up to 1.6949%.

Oil prices rose more than 3% on the trade news.

Brent futures settled up $2.73 at $61.30 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.17 to settle at $57.10 a barrel.

Prior to Tuesday's gains, Brent had traded down more than 20% since hitting a year high in April.

The Argentine peso was less volatile, trading in a tighter range, down 6.04% at 55.30 to the dollar.

U.S. gold futures settled down 0.2% to $1,514.1 an ounce.

(This story corrects to say that Treasury yields rose, not that Treasury prices rose in first sentence)

(Reporting by Herbert Lash; Editing by Nick Zieminski and Will Dunham)

By Herbert Lash

Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL 1.20% 25886.01 Delayed Quote.10.97%
NASDAQ 100 1.59% 7604.108768 Delayed Quote.18.33%
NASDAQ COMP. 1.67% 7895.993811 Delayed Quote.17.16%
S&P 500 1.44% 2888.68 Delayed Quote.13.59%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
08/17Argentina Treasury minister resigns, says 'significant renewal' needed amid economic crisis
RE
08/17LAST ORDERS : Rise of closing auctions stirs worries in European stock markets
RE
08/17EUROPEAN EXTERNAL ACTION SERVICE : Joint statement by Federica Mogherini and the Minister of Foreign Affairs of Canada Chrystia Freeland on Hong Kong
PU
08/17CENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : Chinese financial institutions report net FDI inflows in Q2
PU
08/17UK finance minister awards 600 million pounds to housing fund
RE
08/17China unveils rate reform to steer funding costs lower for firms
RE
08/17WHAT'S NEWS : World-Wide
DJ
08/17WHAT'S NEWS : Business & Finance
DJ
08/17EXCLUSIVE : U.S. set to give Huawei another 90 days to buy from American suppliers - sources
RE
08/17EXCLUSIVE : U.S. set to give Huawei another 90 days to buy from American suppliers - sources
RE
Latest news "Economy & Forex"
Advertisement