Stock markets surge after US and China agree trade truce – business live
Rolling coverage of the latest economic and financial news
Japan’s Nikkei index has closed at a two-month high, driven by optimism over the US-China trade truce.
After spending the better part of two months in trade war purgatory and with G20 done and dusted, risk markets have responded to Saturday’s events in a reveller tone.
Indeed, investors heaved a massive, but exhausted, sigh of relief that both the U.S. and China opted to push the reset button and restart trade negotiations amidst other pleasantries – now we’ll have to see, whether it all sticks.
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
“We will continue to negotiate, and I promise that at least for the time being we won’t be adding additional [tariffs].
We’re going to work with China to see if we can make a deal. China will consult with us and will be buying a tremendous amount of food and agricultural products, and they’re going to start doing that almost immediately.”
Related: US-China trade talks back on track, says Trump
Related: White House insists Trump Huawei reversal not ‘catastrophic mistake’
European Opening Calls:#FTSE 7493 +0.91%#DAX 12577 +1.44%#CAC 5593 +0.98%#MIB 21498 +1.24%#IBEX 9294 +1.03%
The compromise reached between Trump and Xi at the week’s G20 meeting went further than most had expected, with Trump putting the next tranche of tariffs on hold and reopening US companies’ ability to supply Huawei.
It is not clear, however, whether the latter will clear congress and there is plenty of scope for trade talks to break down again in the future. For now, however, risk is well supported.