Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

CORRECTED-GLOBAL MARKETS-Shares, dollar rebound on thaw in U.S.-China trade war

Published 2019-08-13, 08:26 p/m
© Reuters.  CORRECTED-GLOBAL MARKETS-Shares, dollar rebound on thaw in U.S.-China trade war
USD/JPY
-
XAU/USD
-
US500
-
DJI
-
USD/ARS
-
AAPL
-
GC
-
LCO
-
CL
-
IXIC
-
US10YT=X
-
STX50EEX
-

(In first sentence, corrects to say that Treasury yields rose, not that Treasury prices rose.)

* U.S. to delay some tariffs on Chinese exports

* Dollar soars against yen after U.S. makes some concessions

* Oil gains more than 3%, government debt prices rise

By Herbert Lash

NEW YORK, Aug 13 (Reuters) - U.S. and European stocks jumped, the dollar strengthened and Treasury yields rose on Tuesday after the United States said it would delay tariffs on some Chinese products, easing concerns that a protracted trade war would harm global growth.

President Donald Trump backed off his plan to impose 10% tariffs on Sept. 1 on remaining Chinese imports, delaying duties on cellphones, laptops and many other consumer goods in the hopes of blunting their impact on U.S. holiday sales. debt and currency markets sharply reversed course minutes after Wall Street opened for trade on news from Hong Kong about a call Chinese Vice Premier Liu He held with U.S. officials, according to China's Commerce Ministry. spoke with U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin on Tuesday evening, a ministry statement said.

Shares of Apple Inc .AAPL.O , a likely beneficiary of the tariff delay, rose 4.5% and the information technology sector rose 2.46%, the biggest gainer among the 11 S&P 500 sectors.

Investors are closely watching the headlines and that is what markets are trading off of, said Candice Bangsund, a global asset allocation strategist at Fiera Capital in Montreal.

"The news today is obviously good news. Risk appetite has improved drastically but it's consistent with the environment of elevated uncertainty," Bangsund said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Global growth should re-accelerate later this year as major central banks cut interest rates and recent economic data proves better than where markets have traded on it, Bangsund said.

The damage created by tariffs will not go away because economic uncertainly remains, said Kristina Hooper, chief global market strategist at Invesco in New York.

"We can continue in the situation we've been in for months which is one step forward, further into the trade war abyss, followed by one step or a half step backwards," Hooper said.

Wall Street rallied on news of the tariff delay.

The Dow Jones Industrial Average .DJI rose 372.54 points, or 1.44%, to 26,279.91. The S&P 500 .SPX gained 42.57 points, or 1.48%, to 2,926.32. The Nasdaq Composite .IXIC added 152.95 points, or 1.95%, to 8,016.36.

Major stock bourses in Europe also surged, with the Euro STOXX index .STOXX50E of eurozone shares closing 0.92% higher. equity indices had tumbled roughly 5% since late July on growing concerns that the ongoing U.S.-Chinese trade dispute would slam global growth and fester unresolved until after the November 2020 U.S. presidential election.

Markets also had slipped, with gold earlier hitting a more than six-year high, as the unrest in Hong Kong and a rout in the Argentine peso drove investors already rattled by the trade war into havens such as bullion, bonds and the yen.

The yen benefits in moments of geopolitical uncertainty and during economic downturns. The U.S. dollar rose 1.27% to 106.63 yen JPY= per dollar. on the benchmark U.S. 10-year Treasury notes hit session highs, while those on 30-year Treasury bonds rallied from more than three-year lows. Traders earlier were bracing for 30-year yields to sink to a record low below 2.08%. 10-year Treasury US10YT=RR fell 15/32 in price to push its yield up to 1.6949%.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Oil prices rose more than 3% on the trade news.

Brent LCOc1 futures settled up $2.73 at $61.30 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 rose $2.17 to settle at $57.10 a barrel. to Tuesday's gains, Brent had traded down more than 20% since hitting a year high in April.

The Argentine peso ARS= was less volatile, trading in a tighter range, down 6.04% at 55.30 to the dollar. gold futures GCv1 settled down 0.2% to $1,514.1 an ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Reuters poll: 2018 global stock market forecasts interactive

http://tmsnrt.rs/2nHJiJ9 Yen vs U.S. dollar

https://tmsnrt.rs/2MYxgb6 Biggest tail risks

https://tmsnrt.rs/2YLSe3U Argentina primary election interactive

https://tmsnrt.rs/2MYvyX2

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.