European stocks surge after US-China trade truce

  • Following a meeting on the sidelines of the G-20 summit over the weekend, President Trump and President Xi confirmed that they do not intend to levy any new tariffs against each other’s products at present.

 

European markets surged at Monday’s open after U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on additional tariffsin a bid to reignite trade talks.

The pan-European Stoxx 600 jumped more than 1.2% in the opening minutes of trade, technology stocks leading gains with a 2.5% rise as all sectors traded firmly in positive territory.

Following a meeting on the sidelines of the Group of Twenty (G-20) summit over the weekend, President Trump and President Xi confirmed that they do not intend to levy any new tariffs against each other’s products at present, while Trump suggested a reversal of his administration’s decision to ban American companies from selling products to Chinese telecommunications giant Huawei.

Stocks in Asia Pacific mostly rose in Monday afternoon trade as investors reacted to the weekend’s news. Mainland Chinese shares soared, led by the Shenzhen component which jumped 3.23% while the Shenzhen composite also added 2.93%.

Back in Europe, an emergency European Union summit to decide top jobs at the bloc ran into trouble again, after a deal hatched by several European leaders to appoint former Dutch foreign minister Frans Timmermans as president of the European Commission was rejected by center-right and eastern European leaders.

European investors and brokers are scrambling for solutions before a block on Swiss shares trading on EU exchanges comes into force Monday, following the collapse of political treaty talks between Switzerland and the EU.

Turkish President Tayyip Erdogan said the first delivery of the Russian S-400 missile defense system will take place within 10 days, broadcaster NTV reported on Sunday, a day after Erdogan said Trump had told him there would be no U.S. sanctions over the deal.

 

Source: CNBC