Left Menu
Development News Edition

GLOBAL MARKETS-Stocks rebound as Trump downplays U.S.-China trade fight

Reuters | Updated: 14-05-2019 23:13 IST | Created: 14-05-2019 23:13 IST
GLOBAL MARKETS-Stocks rebound as Trump downplays U.S.-China trade fight
U.S. and European stocks regained ground on Tuesday after President Donald Trump downplayed the U.S.-China trade war as "a little squabble" a day after a spike in tensions between the world's two largest economies rattled financial markets.

Fears that the United States and China were spiraling into a fiercer, more protracted trade dispute that could derail the global economy have shaken investors in the past week. On Monday, MSCI's gauge of stocks across the globe posted its biggest one-day decline in over five months and touched a two-month low. The MSCI index bounced back on Tuesday to gain 0.81%. On Wall Street, the Dow Jones Industrial Average climbed 347.87 points, or 1.37%, to 25,672.86, the S&P 500 gained 38.53 points, or 1.37%, to 2,850.4 and the Nasdaq Composite added 122.52 points, or 1.6%, to 7,769.54.

The pan-European STOXX 600 index rose 1.01%. Trump said trade talks with China had not collapsed, while China's Foreign Ministry spokesman said the two sides had agreed to continue pursuing relevant discussions. This followed Washington's decision last week to hike its levies on $200 billion of Chinese imports to 25% from 10%.

The benchmark S&P 500 recorded its biggest one-day loss since Jan 3 on Monday, after China struck back in the trade dispute by saying it would impose higher tariffs on a range of U.S. goods. “It’s likely that it will take markets a day or two to adjust to this increased rhetoric around trade, because markets up until a week ago thought that trade had been put to bed,” said Carol Schleif, deputy chief investment officer with Abbot Downing in Minneapolis.

In another sign trade tensions are hurting the economic outlook, Germany's ZEW institute said investors' mood had deteriorated unexpectedly in May. In currencies, the dollar index, which measures the greenback against a basket of currencies, rose 0.18%, with the euro down 0.12% to $1.121.

The euro slid after Italy’s deputy prime minister said the country was ready to break European Union budget rules if necessary to spur employment. Italian government bond yields rose sharply. Benchmark U.S. 10-year Treasury notes last fell 6/32 in price to yield 2.4245%, from 2.405% late on Monday.

Oil prices climbed after top exporter Saudi Arabia said explosives-laden drones launched by a Yemeni armed movement aligned to Iran had attacked facilities belonging to state oil company Aramco. U.S. crude rose 1.41% to $61.90 per barrel and Brent was last at $71.41, up 1.68% on the day.

(Additional reporting by Dhara Ranasinghe in London and Danilo Masoni in Milan; Editing by Bernadette Baum)


TRENDING

OPINION / BLOG / INTERVIEW

Rethinking Rural Livelihoods in the Times of COVID-19

The reverse migration caused by COVID 19 pandemic has put an additional burden of about one crore people on Indian villages particularly in the states of Uttar Pradesh, Bihar, Bengal and Odisha. Besides increasing the risk of spreading the ...

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Videos

Latest News

Vodafone launches CoreView to help Kiwi businesses

Vodafone New Zealand today announces the launch of CoreView, a Software-as-a-Service SaaS management platform designed to help Kiwi businesses achieve maximum value from their Microsoft 365 investments. The digital services company recently...

Juliet Gerrard appointed to Board of Te Papa Tongarewa

Juliet Gerrard, currently the Prime Ministers Chief Science Advisor and University of Auckland professor in biological and chemical sciences, is newly appointed to the board of Te Papa Tongarewa, Manat Taonga Ministry for Culture and Herita...

Soccer-Southampton boss Hasenhuettl agrees new four-year deal-reports

Southampton manager Ralph Hasenhuettl has agreed a new four-year contract to stay with the club until 2024, multiple British media outlets have reported. Southampton, who appointed Hasenhuettl on a 2-12-year contract in December 2018 after ...

NZ creative sector launches new campaign offering production hub solution

The New Zealand creative production and technology sector today launched a new campaign, Your Creative Business Can Happen Now, offering a world-class production hub solution to studios looking to keep creating and innovating amid the globa...

Give Feedback