Stocks cheer trade reprieve as U.S. and China agree to restart trade talks

Video credit: Reuters Studio
Published on July 1, 2019 - Duration: 01:21s

Stocks cheer trade reprieve as U.S. and China agree to restart trade talks

European shares rose broadly on Monday with the STOXX 50 index hitting its highest level in 17 months, as investors piled into riskier assets after the United States and China agreed to restart trade negotiations after a long lull.

Pascale Davies reports.


Stocks cheer trade reprieve as U.S. and China agree to restart trade talks

Market cheer on Monday followed the apparent trade truce between the U.S. and China.

Europe's STOXX 600 climbed 1% to hit a two month high, With Germany's trade sensitive Dax climbing 1.5%.

The effect of the breakthrough trade talks was most felt in Asia.

Chinese blue chips jumped 2.6% to their highest level since late April.

But the markets could be getting ahead of themselves, U.S. President Donald Trump and his Chinese counterpart Xi Jinping agreed to resume trade talks on Saturday- at the sidelines of the G20.

Trump said there would be no additional tariffs on China and he would ease restrictions on Huawei.

And China agreed to make unspecified new purchases of U.S. farm products.

But no deadline has been set for the deal and the details on how the world's two biggest economies will resolve their key differences remain sketchy- With much of the damage already done.

A survey showed China's manufacturing PMI fell to 49.4.

On Monday.

It's the first time in four months that it's dropped below the 50 mark that separates growth from contraction.

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