Global stocks spring up to multi-month high on Trump’s tariff reprieve

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Global stocks spring up to multi-month high on Trump’s tariff reprieve

On Monday, the 25th of February, 2019, a gauge of global stocks surged, after US president Donald Trump had announced that he would be delaying the tariffs on Chinese goods temporarily, signaling a beginning of the end of Sino-US trade war.

Over buoyant optimisms of resolving a catastrophic trade chaos between the world’s largest economic superpowers, the shares of Asia-Pacific remained most riant, where the Mainland Shanghai index posted an intra-day gain of more than 5 percent, its best intra-day gain since 2015.

Trade hopes also overhauls the worries whirling a poor economic outlook and a furry of soiled earnings report, as the Standard & Poor posted a gain of 0.12 percent to 2,796.11 and the Dow Jones Industrial climbed 0.23 percent to 26.091.95, while the tech heavy Nasdaq Composite gained 0.36 percent to 7,554.56.

As Trump’s tweet of delaying Chinese tariffs and announcement of a meeting with Chinese President Xi Jinping had been a clear indication of a much-expected conclusion of months-long tariff war, MSCI’s world equity index that tracks stock exchanges of 47 countries had posted a gain of 0.2 percent, surging to its highest level since last October.

Earlier in the Asian Pacific session, MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.8 percent, breaching its highest level since September, 2018. Japan’s Nikkei 225 also posted a two and a half month high, while Pan-European STOXX added 0.2 percent, Chinese trade sensitive Frankfurt leading the way, posting a gain of 0.42 percent at the day’s closure.

Despite China’s pledge to US to purchase trillions of agricultural products, non-cyclical goods and services remained the worst performing indexes on Monday (February 25th), posting a muzzling of 0.38 percent.