US markets surged higher as optimism about a near-term US-China trade resolution lifted sentiment on Wall Street. The Dow Jones Industrial Average rose 114.75 points, or 0.4 percent, to finish at a fresh record close of 27,462.11 whilst the S&P 500 gained 11.36 points, or 0.4 percent, to end at 3,078.27. The Nasdaq Composite added 46.80 points, or 0.6 percent, to end the session at 8,432.20.
European markets also rallied with the region’s equities finished at their best level in more than four years. The pan-European Stoxx Europe 600 gained 1% to 403.41 with Germany’s Dax jumping 1.35 percent to 13,136.28. The UK’s FTSE 100 added 0.92 percent to 7,369.69 whilst France’s CAC 40 rose 1.08 percent to 5,824.30.
Maltese stocks meanwhile closed mostly unchanged with the MSE Equity Total Return Index edging up 0.034 percent at 9,818.773 points as Malta International Airport’s 2.07 percent gain was offset by a 2.26% drop in HSBC Bank Malta Plc. MIA closed at €7.40 with HSBC ending the session at €1.30.
US looks to roll back trade tariffs
Reports emerged late on Monday evening that U.S. officials are considering removing tariffs on $112 billion worth of Chinese goods as a concession to seal a “phase one” trade deal. The U.S. has already held off tariff hikes from 25% to 30% on $250 billion of Chinese imports that were to have taken effect in October, and has suggested it may put off tariffs on another $160 billion in Chinese goods that are set to take effect Dec. 15 if an initial trade deal is signed.
The deal, which may be signed this month by Trump and Chinese President Xi Jinping at a yet-to-be determined location, is widely expected to include a U.S. pledge to scrap tariffs scheduled for Dec. 15 on about $156 billion worth of Chinese imports, including cell phones, laptop computers and toys.
China was requesting some changes to the text, but parts of the agreement are “very close to finished,” including the text on financial services, said a U.S. source briefed on the negotiations. The text on agriculture was “dozens of pages long and nearly completed,” the source said.
This article was issued by Peter Petrov, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.