Stocks up as investors eye US-China trade tensions
tokyo — Global markets rallied on Tuesday as investors watched developments in the simmering trade dispute between the US and China.
France’s CAC 40 gained 0.7 per cent to 5,300.12 in early trading, while Germany’s DAX added 1.1 per cent to 12,397.45. Britain’s FTSE 100 gained 0.3 per cent to 7,218.11. US shares were also set to drift higher with the future for the Dow industrial average surging 1.1 per cent to 24,279. The future for the S&P 500 climbed 1.1 per cent to 2,647.70.
Japan’s benchmark Nikkei 225 gained 0.5 per cent to finish at 21,794.32. Australia’s S&P/ASX 200 edged up 0.8 per cent to 5,857.00. South Korea’s Kospi added 0.3 per cent to 2,450.74. Hong Kong’s Hang Seng added 1.7 per cent to 30,728.74, while the Shanghai Composite rose 1.7 per cent to 3,190.32.
Indexes have been fluctuating as investors try to guess the outcome of the US-China trade dispute. President Donald Trump continued to bash America’s trade deals on Twitter, but said the US and China could settle their dispute. Chinese President Xi Jinping on Tuesday promised to cut China’s auto import tariffs and ease restrictions on foreign ownership in its auto industry in comments analysts said could signal a somewhat conciliatory stance.
“Investor sentiment is pinballing between two key themes. Trade wars vs trade negotiations, and the broader improving growth vs rising interest rates. Current sentiment is positive, although Asia Pacific futures markets are flattish after anticipatory gains yesterday,” Michael McCarthy of CMC Markets said in a commentary.
Benchmark US crude rose 82 cents to $64.24 a barrel in electronic trading on the New York Mercantile Exchange. It jumped $1.36, or 2.2 per cent, to $63.42 a barrel overnight. Brent crude, used to price international oils, added 92 cents to $69.57 a barrel.
The dollar slipped to ¥106.96 from 107.12 late Monday. The euro rose to $1.2323 from $1.2275.