Global Stocks Rise As Pound Gyrates On Trump Brexit Comments
New York, (UrduPoint / Pakistan Point News, app - 14th Jul, 2018 ) :US and European stocks rose modestly on Friday with investors mildly hopeful that China and the US can still settle their war over tariffs.
The markets have also been buoyed by optimism over second-quarter earnings.
Still, analysts are cautious about the odds that the global economy will skirt a value-destroying trade war, with Barclays warning Friday that "the market's benign narrative of this having limited economic consequence could become challenged as trade cost effects cascade through global value chains." - Can they work it out? - Beijing's measured response to Trump's midweek tariffs threat and indications from both sides that they are willing to talk has instilled trading floors with a little optimism heading into the weekend.
"The Chinese government, after initially reacting angrily, appears to be calmly considering its options. The absence of an immediate tit-for-tat response lends hope to the belief that China-US trade negotiations aren't completely off the table," said a note from S&P Global Ratings on Friday.
That came after China's Vice Minister of Commerce Wang Shouwen said the economic superpowers "should sit down and try to find a solution to this trade problem." But in a development on Friday that could unsettle hopes of progress, data showed that China's trade surplus with the United States hit a record last month.
In an interview released Friday to coincide with Trump's visit to Britain, the president said the British prime minister's plans for close future ties with the EU would "probably kill" her hopes for a trade deal with the United States.
Lukman Otunuga, Research Analyst at FXTM, said the pound had been "dumped and trumped" at the end of what was already "a terrible trading week for the British pound thanks to political instability at home and Brexit-related uncertainty." Trump later seemed to want to take the edge off his earlier remarks, saying "whatever you do is okay with us, just make sure we can trade together, that's all that matters." That helped sterling to recover to trade little changed on the day and in turn weighed on London stocks, which are often boosted by a soft British currency.
- Key figures at 2100 GMT - New York - Dow: UP 0.4 percent at 25,019.41 (close) New York - S&P 500: UP 0.1 percent at 2,801.31 (close) New York - Nasdaq: UP less than 0.1 percent at 7,825.98 (close) London - FTSE 100: UP 0.1 percent at 7,661.87 (close) Frankfurt - DAX 30: UP 0.4 percent at 12,540.73 (close) Paris - CAC 40: UP 0.4 percent at 5,429.20 (close) EURO STOXX 50: UP 0.3 percent at 3,454.54 (close) Tokyo - Nikkei 225: UP 1.9 percent at 22,597.35 (close) Hong Kong - Hang Seng: UP 0.2 percent at 28,525.44 (close) Shanghai - Composite: DOWN 0.2 percent at 2,831.18 (close) Dollar/yen: DOWN at 112.35 Yen from 112.55 yen at 2100 GMT Euro/dollar: UP at $1.1686 from $1.1672 Pound/dollar: UP at $1.3236 from $1.3206Oil - Brent Crude: up 88 cents at $75.33 per barrelOil - West Texas Intermediate: UP 68 cents at $70.33 per barrel