STOCK markets rose Tuesday, with Tokyo hitting a record, as investors welcomed the extension of a China-US tariff truce and awaited key US inflation data.
US President Donald Trump’s widely expected trade announcement avoids the reimposition of sky-high levies and allows officials from Washington and Beijing to continue talking into November to settle their standoff.
Stock markets benefitted from easing fears of an all-out trade war between the world’s two largest economies, analysts said. “Although an agreement is yet to be agreed, the can has been kicked down the road and that is enough to maintain the market mood,” noted Kathleen Brooks, research director at XTB trading group.
Asian equities rallied, with Tokyo’s export-heavy stock index reaching an all-time peak.
London and Paris stocks also gained while Frankfurt fell nearing the half-way stage.
The pound held its ground after data showed the UK’s unemployment rate remained at a four-year high in the three months to the end of June.
Traders awaited the latest US consumer price index (CPI) reading due Tuesday, which could play a major role in the Federal Reserve’s next decision on interest rates. Bets on a cut have ramped up in recent weeks owing to signs that the world’s number one economy is showing signs of slowing, with figures indicating that the labour market softened considerably in the past three months.
AFP
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