Wall Street opens higher after US-China trade detente

Traders work on the floor of the New York Stock Exchange (NYSE) in New York October 11, 2018. — Reuters pic
Traders work on the floor of the New York Stock Exchange (NYSE) in New York October 11, 2018. — Reuters pic

NEW YORK, Dec 3 — stocks surged in opening trading today after the United States and agreed to a ceasefire on new tariffs over the weekend.

About 15 minutes into trading, the Dow Jones Industrial Average stood at 25,931.59, up 1.5 per cent, as the United States joined a global rally following Saturday’s announcement at the Group of 20 summit in Argentina.

The broad-based S&P 500 advanced 1.2 per cent to 2,793.19, while the tech-rich Nasdaq Composite Index jumped 1.5 per cent to 7,437.69.

The ceasefire follows months of tensions and punitive customs duties on hundreds of billions of dollars’ worth of goods, raising fears of an escalation that would harm the global economy.

Both sides gained from hitting the pause button, with US President Donald Trump avoiding a painful jump in prices on US imports and leader Xi Jinping staving off an escalation of the pressure that higher tariffs would place on his country’s slowing economy.

Still, observers noted the two sides would need to work hard to make sure relations did not sour again. Major issues yet to be resolved include access for US companies and intellectual property protection.

Briefing.com analyst Patrick O’Hare said there was a risk that the announcement was “just a kick-the-can-down-the-road approach and that the ’s positive takeaway from the ‘agreement’ is an overreaction.”

Some market watchers think the trade announcement, coupled with more benign rhetoric last week from Federal Reserve Chair Jerome Powell, could set the stock market up for a strong finish to 2018 after a bumpy fall.

Early gainers included petroleum giants ExxonMobil and Chevron, which both won more than two per cent, after Canadian province Alberta ordered a cut in due to excess supplies in the region. — AFP

Source: The Malay Mail Online

Leave a Reply

Your email address will not be published. Required fields are marked as *

Time limit is exhausted. Please reload CAPTCHA.