Current Stock Market: Trump’s Delayed Tariffs Cheered Stocks
In the status of the current stock market, Asian stocks entered a global equities boost on Wednesday. And this occurred after Washington suspended tariffs on some Chinese imports. As a result, it gave a much-needed relief for markets grasped by political and economic turmoil.
Aside from that, futures for the pan-region Euro Stoxx 50 rose 0.15% in the early European trade. At the same time, German DAX added 0.17%, and Britain’s FTSE rose 0.25%.
In addition to that, the latest tariff news offset a raft of depressing China data in July. On the other hand, the safe-haven yen enjoyed a pull during the mounting gloom in the second-biggest economy of the world.
U.S. President Donald Trump backed down from his Sept. 1 deadline for 10% tariffs on the remaining Chinese imports. As a result, it delayed duties on laptops, cellphones, and other consumer goods in the hopes of blunting their effect on U.S. holiday sales. And also, stocks of Wall Street were up overnight.
The Impact of Tariff Suspension
Meanwhile, also in the current stock market. after the U.S. stocks lifted, the MSCI’s broadest index of Asia-Pacific shares outside Japan surged by 0.8%. Then, the Shanghai Composite Index (SSEC) elevated 0.6%. And Hong Kong’s Hang Seng (HSI), damaged by disruptions from a sizeable anti-government protest, advanced 0.5%.
Also, South Korea’s KOSPI rose 0.7% while Japan’s Nikkei (N225) advanced 1%.
On the other hand, the bounce of Wednesday hardly recovered the heavy losses for equities over the previous months. And broad market sentiment stayed delicate since the U.S.-China trade war is still far from coming up with an agreement.
In addition to that, the dilemma around political risks like the unrest in Hong Kong further puts investors on edge.
Senior market economist Kenta Inoue stated, “This appears to be a routine ploy by the U.S. president, who applies trade pressure on China when stocks are doing well and opts for compromise when they are not.”
The S&P 500, also, rose to a record high by the end of July. However, it lost its momentum due to factors like the U.S.-China trade dispute. The index advanced 1.5% on Tuesday, but it is still down 1.8% for August.