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FxWirePro: Global relief rally in stocks likely to become strong on U.S. - China trade news

After declining almost 8 percent in October, the U.S. benchmark stock index, S&P500, seems to be having a relief rally in November. Along with s&P500, the global stock markets are recovering too.

Asia:

  • Australia’s ASX200 is up 3.4 percent this week.
  • Hong Kong’s Hang Seng is up 7 percent so far this week.
  • India’s Nifty50 is up 5 percent this week, same as Japan’s Nikkei 225.
  • China’s Shanghai Composite is up 3 percent this week.

Europe:

  • UK’s FTSE100 is up 3.4 percent.
  • German DAX is up 3.9 percent.
  • European blue-chip index Eurostoxx50 is up 3.6 percent.

North America:

  • United States’ DJIA is up 3.4 percent, same as S&P500, while NADAQ100 is 2.9 percent.

While it is a very regular affair to have a bounce back after big selloff, this bounce back can turn out to be more than just as it is coinciding with a material improvement in Sino-American future relations. The two Presidents have held Telephonic calls and agreed to resolve the ongoing trade dispute and others between the world’s two largest economies through a coordinated effort. Both presidents would meet at the sidelines of the G20 summit later this month in Argentina, and for the first time since Vice President Mike Pence’s speech outlining U.S. complaints and future strategy towards China and describingChina like the United States’ number one enemy.

Both Presidents have the power to struck a broad-based deal in that meeting, and the speculation would keep the market buoyed and an agreement would make it a more than a bounce back.

  • Market Data
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