Global stocks climb on China data, rate cut hope, Yuan drops to 2019-low


by   |  VIEW 732
Global stocks climb on China data, rate cut hope, Yuan drops to 2019-low

On Monday, the 10th of June 2019, Asian stocks alongside European bourses and US stock futures posted gains after United States had abandoned its plans of imposing higher tariff on all of Mexican imports by June 10th over illegal immigrant issue.

In point of fact, on Friday (June 7th) evening, US President Donald Trump had tweeted that United States and Mexico reached an accord to resolve their trade dispute, after Mexico had agreed to shore up their defenses on Southern border to prevent an illegal migrant rush into United States.

Besides, following Friday’s (June 7th) lackluster US job data, investors had been betting on an imminent rate cut of US Central bank, which had also added to a bullish bias on Monday (June 10th) market. Following a deal averting a catastrophic trade conflict with United States, Mexican currency had risen more than 2 percent on Monday (June 10th), while Chinese Yuan fell to 2019-low on a robust export data that posted a gain of 1.1 percent, insanely beating an analysts’ estimate which had previously forecasted another contraction of Chinese exports on May.

Over the stock market, during preparation of this report, morning European trading hours, the European futures had a higher opening with its regional pan-European STOXX rising 0.4 percent, London’s FTSE 100 was up by 0.5 percent and Frankfurt’s DAX added 0.6 percent, while Asian shares had wrapped up the day higher.

Japan’s Nikkei 225 added 1 percent, while MSCI’s index of Asia-Pacific shares outside Japan was last up by 1.1 percent, led by robust gains of Hong Kong and Indonesia. Addressing to Mexico deal and a heightened optimism of Fed rate cut, a senior strategist at Sumitomo Mitsui Asset Management, Masahiro Ichikawa said, “The deal with Mexico is boosting sentiment while expectations of U.S.

rate cuts will be also supporting share prices. Still, with limited progress seen so far in U.S.-China trade talks, the most important issue for markets, stock prices will be able to rise only so much”.