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Tuesday 20th March 2018

Wall Street Stocks Recover as China Reveres Tariffs

Business

7Dnews London

Thu, 12 Sep 2019 01:00 GMT

Hopes were boosted for a resolution to the trade war after China reversed tariffs on some US goods, which led to Wall Street stocks breaking out of a two-day slumber and wining solid gains, AFP reported on Wednesday, September 11th.

The conciliatory move, coupled with another rise in US Treasury bond yields, helped lift stocks after two lacklustre sessions.

"Equities have the best of both worlds," said Karl Haeling of LBBW, noting expectations of central bank easing.

Meanwhile, the Dow Jones Industrial Average jumped 0.9% to finish the day at 27,137.04, and the broad-based S&P 500 advanced 0.7% to close at 3,000.91, as the Nasdaq Composite Index surged 1.1% to 8,169.68.

US President Donald Trump welcomed the development as a "big move", citing that China has released two lists of exempted US goods, saving some seafood and anti-cancer drugs from the tariff hit. However, Beijing did not spare high-profile US products like soybeans and pork.

Top negotiators expect to reconvene in Washington early next month after an acrimonious summer in which trade relations deteriorated sharply, and both governments announced waves of new tariffs in a stand-off that is dragging on the global economy.

Among individual companies, Boeing rocketed 3.5% higher after Chief Executive Dennis Muilenburg confirmed the company was still on track to receive approval early in the fourth quarter to resume flights on the 737 MAX, which has been grounded since March after two deadly crashes.

Nonetheless, after General Electric (GE) announced plans to sell 120.8 million shares of the company. GE gained 2.2%, while oil services company Baker Hughes plunged 7.6%.

Key economic reports in the coming days including data on US consumer prices and retail sales, as well as a policy decision by the European Central Bank, are expected to undertake more stimulus.


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