Wall Street gains on hopes that US-China trade deal still on track

“The trade war will be the key driver of sentiment in the immediate few weeks,” DBS Group analysts wrote in a report.

Beyond China, Trump has been pushing ahead on trade disputes all around the world recently. On Tuesday, he proposed tariffs on $US2.4 billion ($3.5 billion) in French products in retaliation for a tax on global tech giants including Google, Amazon and Facebook. That follows a threat on Monday to raise tariffs on steel and aluminium from Argentina and Brazil.


The trade war has hurt manufacturers and weighed on economic growth around the world. Central banks have cut interest rates and unloaded stimulus to help spur growth. In the United States, a strong job market is also helping to prop up the economy.

Financial and health care stocks accounted for a big slice of the rally. Communication services, industrial and technology companies also helped lift the market.

Keeping score

The S&P 500 was up 0.7 per cent as of 2:07 pm New York time. It was on track to recover about a third of its losses from the prior three days.

The Dow Jones Industrial Average climbed 192 points, or 0.7 per cent, to 27,695, and the Nasdaq composite rose 0.6 per cent.

European stock indexes were higher, while Asian markets sank.


Treasury yields also recouped some of their sharp drops from earlier in the week. Rising optimism on trade means less demand for safe investments, and when prices for Treasurys fall, their yields rise.

The yield on the 10-year Treasury rose to 1.78 per cent from 1.71 per cent late on Tuesday. It was at 1.83 per cent on Monday.


A rebound in the price of crude sent oil-related stocks to the market’s biggest gains. Energy stocks in the S&P 500

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