TEHRAN, Jul 1 - Stocks rallied and bonds retreated on Monday as the United States and China agreed to restart trade talks, leading investors to cut back wagers on aggressive policy easing by the major central banks.
TEHRAN, Young Journalists Club (YJC) -The dollar gained against the safe-haven yen as Treasury yields rose and futures reined in bets for a half-point rate cut from the U.S. Federal Reserve this month.
“It (Trump-Xi G20 meeting) played out as well as possible,” said Hans Peterson, SEB Investment Management’s global head of asset allocation. “So it gives us time to digest and get a bit better activity in the global economy.”
The United States and China agreed on Saturday to resume trade negotiations after President Donald Trump offered concessions to his Chinese counterpart Xi Jinping when the two met at the sidelines of the G20 summit in Japan.
Those included no new tariffs and an easing of restrictions on tech company Huawei [HWT.UL]. China agreed to make unspecified new purchases of U.S. farm products and return to the negotiating table.
The initial reaction was one of relief that at least new tariffs were avoided.
Europe's STOXX 600 climbed 1% and Japan's Nikkei .N225 2.1% to hit two-month highs. MSCI's broadest global index .MIWD00000PUS added 0.3%, having just missed its best first half to a year.
Chinese blue chips .CSI300 jumped 2.6% to their highest since late April and Germany's export-heavy DAX .GDAXI gained 1.5% to its highest since August. The Huawei hiatus and M&A activity pushed Europe's tech sector .SX8P to a one-year peak. [.EU]
Source:reuters
Your Comment