London (AFP) – Stock markets rose Monday on optimism that the US-China trade war is about to ease, with a possible deal in view when presidents Donald Trump and Xi Jinping meet later this week. Argentina’s stocks soared 20 percent on the back of President Javier Milei’s midterm victory, which saw his party win the biggest amount of votes in weekend legislative elections. The peso also jumped.
European stock markets were muted, reined in by anticipation of interest-rate decisions this week from the Federal Reserve and European Central Bank, although Spain’s index reached a record high from strong growth and corporate earnings. Overall, the positive sentiment was “buoyed by weekend chatter suggesting that Washington and Beijing may finally be finding some common ground” and pulling back from painful tit-for-tat trade measures, said Fawad Razaqzada, market analyst at Forex.com. “All eyes now turn to Thursday’s meeting between US President Donald Trump and Chinese President Xi Jinping, which could see these tentative understandings formalised,” he said.
The dollar and gold prices retreated on easing risk sentiment. Trump arrived in Japan Monday as part of a tour of Asia that could see the president and Xi end their bruising trade war. Speaking on Air Force One, Trump said he was hopeful of a deal when he sees Xi Thursday, while also indicating he was willing to extend his trip to meet North Korean leader Kim Jong Un. “I have a lot of respect for President Xi and we are going to I think…come away with a deal,” Trump told reporters en route from Malaysia, where comments from US and Chinese negotiators raised hopes of an accord. China’s vice commerce minister, Li Chenggang, said a “preliminary consensus” had been reached. The progress paves the way for Trump and Xi to meet Thursday in South Korea on the sidelines of the Asia-Pacific Economic Cooperation summit, their first face-to-face meeting since the US leader returned to office.
Chinese stock indices closed up more than one percent Monday. The advances followed a strong finish Friday on Wall Street, after benign US inflation data set the stage for a Federal Reserve interest-rate cut Wednesday, despite a lack of clarity over the health of the US economy owing to the ongoing government shutdown. On Thursday, the European Central Bank is expected to hold borrowing costs steady for its third straight meeting, with eurozone inflation largely under control.
In corporate news, shares in US chipmaker Qualcomm soared 20 percent after the company unveiled two new AI processors designed for data centres, pushing into a market dominated by rivals Nvidia and AMD.
– Key figures at around 1630 GMT –
New York – Dow: UP 0.5 percent at 47,435.81 points
New York – S&P: UP 1.0 percent at 6,857.90
New York – Nasdaq: UP 1.6 percent at 23,580.33
London – FTSE 100: FLAT at 9,649.38 points (close)
Paris – CAC 40: UP 0.2 percent at 8,239.18 (close)
Frankfurt – DAX: UP 0.3 percent at 24,308.78 (close)
Tokyo – Nikkei 225: UP 2.5 percent at 50,512.32 (close)
Shanghai – Composite: UP 1.2 percent at 3,996.94 (close)
Hong Kong – Hang Seng Index: UP 1.1 percent at 26,433.70 (close)
Euro/dollar: UP at $1.1638 from $1.1627 on Friday
Pound/dollar: UP at $1.3333 from $1.3296
Dollar/yen: UP at 153.05 yen from 152.85 yen
Euro/pound: DOWN at 87.29 pence from 87.43 pence
Brent North Sea Crude: DOWN 0.1 percent at $65.27 per barrel
West Texas Intermediate: DOWN 0.3 percent at $61.70 per barrel
© 2024 AFP
