Relief to markets, Asian stock market and US futures climbed due to trade conversation of China and America
New Delhi:
In the US-China Trade Deal between China and America, the ‘Substancial Progress’ i.e. there was a positive atmosphere in the Global Market after reports of great progress. Asian Stocks and US Equity Futures gained momentum, which has improved the sentiments of investors.
The Asian stock market started a great start on Monday morning. The stock markets of Australia, Japan and South Korea saw an increase. Japan’s topics index has risen for the 12th consecutive day, which is the longest boom since October 2017.
Us futures and dollars rise, gold rolled down
Talking about the US stock market, the futures of S&P 500 and Nasdaq 100 climbed more than 1.2%. Along with this, the prices of crude oil also increased, while gold prices fell by 1.5%. The dollar has also strengthened against the rest of the currency. The 10-IR US Treasury Yield saw a rise of 3 basis points.
Concerns related to trade war still persist
However, the S&P 500 index has now reached almost the same level where it was in early April when US President Donald Trump announced the reciperook tariff. But the further rally will depend on how soon the trade war is less. If the tariff war does not stop, then the global economy may be at risk of both recession and inflation.
Crude oil bounce, trade deal improves
On Monday, Brent crude rose 0.4% to $ 64.18 per barrel and WTI crude rose 0.5% to $ 61.30 per barrel. On Friday, both benchmarks rose by more than $ 1 and saw a jump of more than 4% last week. This was the first week -long gains after mid -April.
US and China adopted positive stance on trade conversation
After the trade conversation ended on Sunday, the two countries showed a positive stance in their respective statements. US officials said that there has been a deal between the two countries that could reduce the US trade deficit, while China said that “significant consent” has been created. However, till now both sides have not shared the details of the deal. China’s Vice Premier Lifeng said that a joint statement will be released on Monday.