FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
43,062,591Confirmed
1,156,270Deaths
31,742,791Recovered
Fetching Location Data…
Advertisement
Advertisement
Thomas Hughes
US Indices Rise

Asian Markets Surge As Trade Truce Lifts Equities

Asian markets were up across the board as news of a truce between Chinese President Xi Jinping and US President Donald Trump swept through the market. The agreement reached during the G-20 Summit in an unrelated meeting puts a halt on tariff escalation and gives teams on both sides 90 days to work on a concrete trade agreement. Areas of contention include technology, agriculture, and intellectual property.

The Japanese Nikkei lagged the market with a gain of 1.00%. The China-centric Shang Hai Composite and Heng Seng Index both posted gains greater than 2.5%. Others in the region closed with gains near 1.75% as easing trade tensions (and a dovish FOMC) point to renewed global growth.

Advertisement
Advertisement

Miners Lead The EU Market At Midday

Mining and auto stocks were up more than 4% at midday in the EU. The news of easing tariffs threats bode well for both sectors who’ve been threatened by increasing cost and declining demand related to the US/China trade dispute. EU based miners have a heavy exposure to China which helped drive shares of Antofagasta, Glencore, and Anglo American up more than 6%.

The German DAX led the major indices of the region with an advance of 2.5% in early trading. The gains in Germany were moderated to about 2.25% by midday but were still leading by a significant margin. The UK FTSE was a distant second with a gain of 1.61% while the French CAC trailed the powerhouse-markets with an advance of only 0.90%. Brexit negotiations and the Italian budget stand-off are still unresolved.

US Futures Point To Big Gains, Dow Surges 450 Points

The US futures market indicated a strongly positive open for the major indices on Monday morning. The NASDAQ led with a gain near 2.25% but the blue-chip Dow Jones Industrials and broad-market S&P 500 were both close behind with gains near 1.80%. The surge is due in part to the Trump-Xi agreement which is being viewed as a best-case scenario event, the surge is also due in part to the Fed’s dovish turn of sentiment. The combination is a powerful catalyst that should open the doors to future, global, GDP growth.

Secretary of the Treasury Steve Mnuchin expressed hope on Monday morning teams on both sides would be able to turn the tempory truce in a lasting agreement. Despite the ray of hope provided by the agreement, some pundits are already pointing to glaring differences of opinion that could easily derail any future improvements in relations. This week traders will be on the lookout for signs the two sides are following up on the truce announcement.

In energy news, the price of Brent and WTI both spiked about 5% in early Monday trading and helped lift stocks. The move is driven by expectations OPEC will vote to cut production at their meeting in Vienna scheduled for this week.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US