European, US stocks rebound as trade war flares

0
17

AFP -STR There are plenty of ways in which the US and China can hurt each other’s economies

Stock markets on both sides of the Atlantic rallied Tuesday, paring heavy losses sparked by a raging US-China trade war over the past week.

Major US indices had lost more than two percent on Monday after China announced retaliatory tariff measures on the United States following Washington’s move last week to more than double the punitive tariffs already in place.

US President Donald Trump on Tuesday called the escalating dispute with China “a little squabble” but said Washington was still considering extending tariffs to another $300 billion worth of Chinese merchandise.

Still, some analysts viewed the reaction in markets on Monday as exaggerated and still expect a deal. The two sides have both said they expect further talks, and Trump says he may meet his Chinse counterpart Xi Jinping next month at a Group of 20 summit in Japan.

“Equities are attempting to claw back some lost ground,” noted analyst Chris Beauchamp at trading firm IG, “but the overall atmosphere of caution still prevails.”

On Wall Street, the Dow Jones Industrial Average climbed 0.8 percent, winning back about one third of the Monday’s loss after China’s announcement of new tariffs battered stocks.

Europe’s main stock markets were all higher at the close, with Paris the best performer.

Earlier Tuesday Asian markets had plunged further in reaction to Monday’s US stock plunge.

Elsewhere, oil prices advanced Tuesday as traders eyed Middle East woes, “sabotage attacks” on two Saudi Arabian oil tankers and a growing crisis in Venezuela.

On Tuesday, drone attacks claimed by Iran-aligned Yemen rebels also shut down one of Saudi Arabia’s main oil pipelines.

– Key figures around 2040 GMT –

New York – Dow: UP 0.8 percent at 25,532.05 (close)

New York – S&P 500: UP 0.8 percent at 2,834.41 (close)

New York – Nasdaq: UP 1.1 percent at 7,734.49 (close)

London – FTSE 100: UP 1.1 percent at 7,241.60 (close)

Frankfurt – DAX 30: UP 1.0 percent at 11,991.62 (close)

Paris – CAC 40: UP 1.5 percent at 5,341.35 (close)

EURO STOXX 50: UP 1.3 percent at 3,364.38 (close)

Tokyo – Nikkei 225: DOWN 0.6 percent at 21,067.23 (close)

Hong Kong – Hang Seng: DOWN 1.5 percent at 28,122.02 (close)

Shanghai – Composite: DOWN 0.7 percent at 2,883.61 (close)

Euro/dollar: DOWN at $1.1208 from $1.1222 at 2100 GMT

Pound/dollar: DOWN at $1.2907 from $1.2958

Dollar/yen: UP at 109.62 yen from 109.30 yen

Oil – Brent Crude: UP $1.01 at $71.24 per barrel

Oil – West Texas Intermediate: UP 74 cents at $61.78 per barrel

burs-jmb/dg

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here