On Wednesday, the 8th of May 2019, a basket of global equity indices rose, while safe-haven bond prices witnessed a whiplash, after White House had said that it had received a signal from Beijing that they wanted to seal a trade deal with United States and to avert a tariff hike despite deep differences.
Today’s rebound came as a surprise to many, as the US Federal Register had posted a notice yesterday (May 7th), saying that the United States would raise tariff to 25 percent from earlier 10 percent on $200 billion of Chinese imports, which could eventually jeopardize overall progresses made so far over the latest leg of trade talks between the world’s first and second largest economy.
Most of the global indexes had started off the market lower, however, later they regained some momentum following reveal of a statement of White House Spokeswoman, Sarah Sanders, who had been quoted saying that the Beijing had sent an indication that it would want to conclude a ten-month long tit-for-tat tariff war with US.
Followed by the reveal of White House statement on later part of the European trading hours, indices in Europe and Wall St. eased some of its earlier losses, while MSCI’s gauge of global stocks, which keeps track of stock exchanges of 47 countries, added 0.11 percent.
Nevertheless, earlier in the Asia-Pacific trading hours, Asian share index outside Japan closed the day 0.94 percent lower, while Nikkei 225 had shredded off 1.46 percent of its earlier gains over worries of an escalating trade tension between United States and China.
The American dollar had wrapped up the day lower with its index fell by 0.11 percent, while euro was up by 0.13 percent to $1.1204. US crude rose 1.4 percent to $62.26 per barrel amid a surprise decline of US inventories and a fall of global supply following sanction on Iranian and Venezuelan crude, while UK crude had rounded off the day 0.9 percent higher at $70.51 per barrel.