Markets rally after ceasefire in US and China trade row
MARKETS rallied strongly around the globe yesterday as investors breathed a sigh of relief, digesting news of a ceasefire in the US- China trade dispute.
The ISEQ index of Irish shares saw stocks with wide international exposure like CRH, Smurfit Kappa and Kingspan post rises.
The Dow, Nasdaq and S&P rallied, following higher European and Asian shares after Donald Trump ( right) and Xi Jinping agreed to hold off on new tariffs and intensify trade talks.
Matthew Litfin, a portfolio manager at Columbia Threadneedle Investments, said: “The trade truce is a positive for US equities because it temporarily removes some of the worst-case tariff scenarios.
“Three months is a short time to hold significant negotiations, and global growth appears to be slowing, so I don’t expect investor euphoria to persist.”
The truce between the US and Chinese leaders at the Group of 20 summit in Argentina has gone some way in calming investor fears over the state of global growth.