Followed by a trade truce between the US and China, Wall Street replied with major rallies of indexes, and the market outlook appears to be more buoyant, as the trade truce stated that the countries would not be imposing more tariffs over the next 90 days, when they will be discussing over the terms of concluding this baleful trade war.
On Monday, 3rd December, the Wall Street had been shining, as the major indexes gained over 1% and the upbeat market momentum has reached the prices towards a three-weekly high. The Benchmark S&P 500 gained over 1%, claiming its biggest weekly percentage gain in nearly seven years.
As market spirit has been high and the investors are lifted over the weekend news of trade truce between US president Donald Trump and the Chinese President Xi Jinping, a chief investment strategist at Stare Street Global Advisor, Michael Arone said, “Today is mostly about celebrating the fact that the U.S.
and China have delayed what could have been some of the worst-case scenarios regarding their trade relations.” Although there had been relief rally on Wall Street, Asian stocks are experiencing heavy fall in Tuesday’s morning and the Chinese Shanghai has been struggling to stay out of the red zone, signaling that the trade truce boost might have been well over.