European Stocks Following U.S. Strong Lead; Alibaba’s Jack Ma Recants Promise to Create U.S. Jobs

European equity markets are trading higher on Thursday, following the lead set by Wall Street on Wednesday. Risk is on with investors shrugging off concerns over the trade dispute between the United States and China.

Earlier in the week, the United States hit China with tariffs of 10 percent on $200 billion in Chinese goods. China retaliated by putting tariffs on $60 billion in U.S. goods. Instead of weakening on the headlines, stocks have rallied because the tariffs turned out to be less than investors had expected.

Adding further to the strong gains were a jump in U.S. Treasury yields which pushed up banking stocks and the financials sector.

Asian Markets

Stocks finished higher in Asia led by the strong U.S. gains. One story that is breaking has to do with Jack Ma, founder of Chinese retail giant Alibaba. According to reports, Mr. Ma has recanted his promise to Donald Trump to create 1 million in U.S. jobs.

“The promise was made on the premise of friendly US-China partnership and rational trade relations,” Ma said to Chinese news site Xinhua. “That premise no longer exists today, so our promise cannot be fulfilled.”

European Markets

The slate is full in Europe with investors turning their attention on an informal summit of European Union leaders in Austria. Brexit and immigration are set to be the main points of discussion. Ahead of the meeting, U.K. Prime Minister Theresa May has called for “goodwill” and flexibility from her EU counterparts. According to reports, the future of the Irish/Northern Irish border remains a stumbling block in talks.

Euro/US Stock Markets

In news that may have an impact on U.S. retail giant Amazon, European Union regulators are checking whether Amazon is using merchants’ data in a way that prevents competition, Europe’s antitrust chief said on Wednesday.

U.S. Economic Reports

There are no major U.S. reports scheduled but the sum of the minor reports could have an impact on the stock market price action. First up at 1230 GMT is the Philly Fed Manufacturing Index. It is expected to come in at 17.5, up from the previously reported 11.9.

Weekly Unemployment Claims are expected to hold steady at 210K, up slightly from 204K. The Conference Board’s Leading Index is expected to have risen 0.5%, down slightly from 0.6%. Finally, Existing Home Sales are expected to have risen 5.36M, up marginally from 5.34M.