As US-China trade tensions decrease, stocks hit new highs

Amman Stock Exchange starts adopting the tradition of ringing the bell

The tension between the United States and China has started to slowly decrease. And such tension ebb is affecting the global stock market in a very positive way, as noted by the Financial Times.

On Monday, December 16, global stocks saw new record highs. The primary reason was that China and the US de-escalated the ever-increasing trade war, a fact that really boosted investors’ confidence.

According to the Financial Times, Wall Street noted a 4th day high owing to the phase one pact and a much-awaited vote in Congress this week on the US-Mexico-Canada trade deals. The S&P increased by 0.7%, an increase primarily driven by shares in healthcare, utilities and energy.

On the other hand, the DJIA added 0.4%, while Nasdaq Composite shot up with 0.9%.

But American equities are not the only ones experiencing a bull market right now. European stocks are also going up as London’s FTSE 100 increased by more than 2%. As FT noted, this is the largest percentage gain since 2016. The gain represented a 2-day winning streak for the UK after the election victory of Boris Johnson.

In addition, Stoxx 600 shot up with 1.4%. What the FT also reported is that all 3 major US indices and the Stoxx have experienced record closing high levels as the world economy is reaching “peak tariffs” in the trade “war” between China and the US. One event that certainly helped the stock markets around the world was a limited agreement between the two global powers set on Friday to put a temporary halt to the trade war.

Analysts now predict that the easy of tension may help the global economy improve tremendously in 2020, and the global stock market has started to show signs of improved investors’ confidence.

More about the US-China trade relationship can be found here:

Read Also: