Global stocks, oil surge on Mexico tariff delay optimism

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Global stocks, oil surge on Mexico tariff delay optimism

On Thursday, the 6th of June 2019, a gauge of global stocks had posted gains despite undertaking a hesitant start over worries of further escalation of trade tension between US and Mexico. Never the less, after midday US trading hours on Thursday (June 6th), global stocks alongside crude oil begun to soar following a Bloomberg report revealing that a delay on Mexico tariff would soon be announced.

Following the release of Bloomberg report, the dwindling Mexican Peso had also surged, which had been in risk of breaching a yearly low, if the hiked tariff would have taken place by June 10th. Besides, the Bloomberg report had also added that US President Donald Trump could make the decision of delaying Mexico tariff public by as early as next Monday (June 10th), which had an immediate impact on the money market and global stocks had witnessed a sharp rebound.

On Thursday (June 6th) market wrap-up, the Dow rose by 0.71 percent to 25,720.66, the S&P surged by 0.61 percent to 2,843.49 and Nasdaq added 0.53 percent to 7,615.55, while the regional Pan-European index STOXX 600 had shed 0.02 percent in light of a stronger euro and the MSCI’s gauge of global index that keeps track of stock exchanges of 47 countries had gained 0.33 percent.

Meanwhile, the US West Texas Intermediate crude future price had skyrocketed 2.73 percent to $53.09 per barrel on late US trading hours.