FYI: Global stocks and oil rose Monday, boosted by a temporary cease-fire on trade between Beijing and Washington.
Traders and analysts called the moves a relief rally, and cautioned that frictions around commerce between the world’s two largest economies were likely to be long-lasting. Many investors are also concerned about the potential for a further slowdown in China and about financial risk in that country.
The Stoxx Europe 600 index was 1.1% higher, led by technology shares, while Germany’s DAX index was up 1.6%. Shares in London were also higher, with the FTSE 100 rising 0.9%.
The benchmark Shanghai Composite Index gained 2.2% while Japan’s Nikkei 225 Index rose 2.1%. The yuan edged up 0.3% against the dollar in both onshore and offshore trading. Brent crude oil futures increased 2.7%.
In the U.S., S&P 500 futures rose 1.1%. Changes in equity futures don’t always accurately predict stock moves after the opening bell.
Haven assets, which tend to rally in times of stress, retreated. Gold fell nearly 1.9%, the Japanese yen weakened slightly against the dollar, and 10-year U.S. Treasurys fell in price. That pushed up yields, which move inversely to prices, by 4.5 basis points to 2.045%.
Regards,
Ted
Market Watch:
https://www.marketwatch.com/story/stock-futures-soar-as-us-china-agree-to-truce-on-tariff-war-2019-07-01/printWSJ:
https://www.wsj.com/articles/stocks-oil-yuan-rally-on-relief-at-trade-truce-11561955528Bloomberg:
https://www.bloomberg.com/news/articles/2019-06-30/yuan-climbs-dollar-dips-on-trade-truce-yen-falls-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/trump-xi-meeting-stock-market-rally-winners-apple-micron-qualcomm-intel-dow-jones-futures/CNBC:
https://www.cnbc.com/2019/06/30/dow-futures-surge-220-points-at-the-open-after-trump-and-xi-agree-to-not-impose-more-tariffs.htmlReuters:
https://uk.reuters.com/article/us-global-markets/stocks-jump-on-trade-reprieve-bonds-reconsider-rate-cuts-idUKKCN1TV10GU.K.
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-at-over-two-month-high-as-u-s-china-trade-tensions-ease-idUKKCN1TW1QREurope:
https://www.reuters.com/article/us-europe-stocks/european-shares-hit-2-month-high-after-u-s-china-revive-trade-talks-idUSKCN1TW1O1Asia:
https://www.cnbc.com/2019/06/30/dow-futures-surge-220-points-at-the-open-after-trump-and-xi-agree-to-not-impose-more-tariffs.htmlBonds:
https://www.cnbc.com/2019/07/01/us-bonds-treasury-yields-tick-higher-amid-economic-data-auctions.htmlCurrencies:
https://www.cnbc.com/2019/07/01/forex-markets-japanese-yen-chinese-yuan-us-china-trade-in-focus.htmlOil:
https://www.cnbc.com/2019/07/01/oil-markets-russia-saudi-arabia-opec-in-focus.htmlGold:
https://www.cnbc.com/2019/07/01/gold-markets-japanese-yen-chinese-yuan-us-china-trade-in-focus.htmlCuirrent Futures:
https://finviz.com/futures.ashx
