Dow jumps 500 points on optimism over China and United States trade talk

Dow jumps 500 points on optimism over China and United States trade talk

Dow jumps 500 points on optimism over China and United States trade talk

US stocks were poised for further solid gains following Monday's advance, with Dow futures and the broader S&P 500 futures up 0.6 percent. In 1.15pm trading, the Standard & Poor's 500 Index climbed 1.7 percent. China's new economy czar, Vice Premier Liu He, told U.S. Treasury Secretary Steven Mnuchin in a phone call that Beijing was ready to defend itself in an escalating tariff dispute.

U.S. stocks tumbled on both on Thursday and on Friday last week after President Donald Trump unveiled tariffs on up to $60bn of Chinese imports and vowed to counter China's alleged "theft" of American intellectual property. Meanwhile, the Nasdaq Composite increased 3.3% as investors flocked back into technology shares.

"There are some tentative signs that fears of an escalation of trade tensions are beginning to ease", Craig Erlam, a market analyst at OANDA wrote in a note to clients.

Facebook shares traded 2 percent weaker at US$156.19 as of 1.26pm in NY, down from a record high of US$193.09 last month.

"Equities are extending their rebound as investors breath a collective sigh of relief that a global trade war looks to be off the menu (China and United States negotiating, several exemptions)".

More news: Morkel takes 300th Test wicket as Australia wilt

Stocks recovered after indexes lost more than 6 percent last week - their worst weekly decline in two years - in the wake of tariffs imposed by the USA and China against each other. Shares in Dublin were also higher, with the ISEQ up 1%. He said he was "cautiously hopeful" of a truce between the two sides.

Shares of Boeing and Caterpillar were up around two per cent, two companies who have been hit hard in recent weeks by tariff news.

Fears of a trade war mounted this month after Trump first slapped tariffs on steel and aluminium imports, and then on Thursday specifically targeted China by announcing plans for tariffs on up to $60 billion of Chinese goods.

In Toronto, the S&P/TSX Composite Index was up 0.6 per cent to 15,321 points. U.S. West Texas Intermediate (WTI) crude futures eased 5 cents to $65.83. The technology sector weighed with steep losses by Amazon after reports U.S. President Donald Trump wants to go after the company with an antitrust suit.

"The. trade war story. should be taken into account when trying to quantify the potentially bullish effect of the geopolitical element in oil markets", said analysts at consultancy JBC Energy.

Related news