Global stock market rallies on fresh optimism of US-China trade deal

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Global stock market rallies on fresh optimism of US-China trade deal

On Tuesday, the 12th of February, 2019, the news of a tentative deal that would avert another streak of US Federal Government shutdown, and signs of US and China reaching a trade deal, had broadly surged the global stock markets and bond yields remained riant.

Earlier in the Asia Pacific session, Japan’s Nikkei 225 tuned up an up-scale note with a 2.6 percent rally, which had been its best day in the year, meanwhile, the Pan-European STOXX 600 index of European shares jumped over 0.5 percent.

Wall Street closed the day much higher than anticipated yesterday (February 11th) and three of the main indexes of Wall St. posted heavy gains at the Tuesday market closure. Trade exposed Dow Jones Industrial Averages gained 1.49 percent to 25,425.76, over renewed hope of rubberstamping a trade deal before the truce deadline.

The Standard & Poor surged by 1.29 percent to 2,744.73 and the tech-heavy Nasdaq Composite posted a rise of 1.46 percent to 7,414.62. Echoing the leads of Asian stocks, the European stocks closed higher with FTSE reaching a 4-month high.

Meanwhile, Germany’s DAX 30 posted a gain of 1.01 percent to 11,126.08 and the Paris’s CAC 40 added 0.84 percent to its yesterday’s gain to 5,056.35. Backed by a wave of fresh optimism over trade talk, the MSCI’s gauge of stocks across the world gained 1.17 percent on Tuesday (February the 12th), while a chief market economist at Spartan Capital Securities in New York, Peter Cardillo said, “What investors are taking from this is that the government stays open; whether or not Trump signs on the deal is secondary,” addressing the impact of Federal Government Shutdown.