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World stock indexes starts improving after news of US China Trade talks

US stock futures shot up across the board, with Dow Futures up 1.2 percent while S&P futures and Nasdaq futures up 1.3 percent and 1.8 percent respectively.


Reuters
Updated: 26-03-2018 17:57 IST
World stock indexes starts improving after news of US China Trade talks

Signs of potential compromises were also supported by news overnight that South Korea would be exempt from US steel tariffs. (Image Credit: Wikimedia)

World stocks came off six-week lows and US stock futures jumped on Monday on optimism that the United States and China are set to begin negotiations on trade, easing fears about a trade war between the world's two largest economies.

MSCI's world equity index, which tracks shares in 47 countries, touched its lowest level since Feb. 9 but was then buoyed to a 0.25 percent gain after a Wall Street Journal report that Treasury Secretary Mnuchin was considering a visit to Beijing to begin negotiations.

US stock futures shot up across the board, with Dow Futures up 1.2 percent while S&P futures and Nasdaq futures up 1.3 percent and 1.8 percent respectively.

"Exemptions on steel/aluminium tariffs have already been granted for other important trade partners (Canada, Mexico, EU), which suggests the US president is using this approach more for negotiating leverage rather than any real intention to start a global trade war," wrote Mike van Dulken, head of research at Accendo Markets, noting a "measured" and "nuanced" response from China so far.

Most European stock indices also strengthened, with the pan-European STOXX 600 benchmark was up nearly half a percent and the export-sensitive German DAX up 0.6 percent.

Japan's Nikkei, meanwhile, erased earlier losses of 1.3 percent to end 0.7 percent higher.

Fears of a trade war mounted this month after Trump first slapped tariffs on steel and aluminium imports, and then on Thursday specifically targeted China by announcing plans for tariffs on up to USD 60 billion of Chinese goods.

Signs of potential compromises were also supported by news overnight that South Korea would be exempt from US steel tariffs in a revision of the bilateral trade pact between the two countries.

South Korea's benchmark share index rose 0.8 percent.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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