Mar­kets rally af­ter cease­fire in US and China trade row

Belfast Telegraph - Business Telegraph - - News - BY STAFF RE­PORTERS

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.

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