Trade war fears fade after Trump G7 comments

on Aug27
by | Comments Off on Trade war fears fade after Trump G7 comments |

European shares reversed course to trade higher on Tuesday after China’s State Council announced that it is considering relaxing and removing restrictions on auto purchases as part of a broad move to boost consumption.

European Markets: FTSE, GDAXI, FCHI, IBEX

The pan-European Stoxx 600 erased early gains to climb 0.2%, auto stocks receiving a 1% boost from the Chinese announcement. China also said it will encourage credit support for purchases of new energy vehicles and smart home appliances.

Investors are also monitoring the potential recommencement of U.S.-China trade talks and unfolding developments in Italian politics.

Market sentiment appeared to improve at the start of the week after President Donald Trump said on Monday that Washington officials had been in touch with Beijing over reopening trade negotiations.

“China called last night our top trade people and said ‘let’s get back to the table’ so we will be getting back to the table and I think they want to do something,” Trump said at the G-7 summit.

But the president’s remarks were subsequently contradicted by Hu Xijin, editor-in-chief of the Global Times, who said in a tweet that negotiators from both countries did not talk over the phone. Hu’s tabloid is run by the People’s Daily, the official newspaper of China’s ruling Communist Party.

In other G-7 news, President Trump said he would meet Iran’s president, Hassan Rouhani, under the right circumstances in order to end a confrontation over the 2015 nuclear deal.

Meanwhile, the U.S. and France have reached a compromise agreement on France’s digital tax, French President Emmanuel Macron said Monday. Trump had earlier threatened to hit France with a retaliatory wine tax over the move, which would see the revenues of large tech companies like Facebook, Amazon and Google hit with a 3% levy.

Italian politics has emerged front and center once again as the ruling Five Star Movement (M5S) and the opposition Democratic Party (PD) appeared on the verge of a deal to form a new Italian government on Monday, after the PD indicated it had abandoned a veto on Giuseppe Conte serving another term as Prime Minister.

In terms of earnings, Scandinavian Airlines is due to report its interim third-quarter results. As for data, German GDP (gross domestic product) and French business sentiment figures are due Tuesday morning.

Stocks on the move

London-based oil and gas company Technipfmc saw its share price climb 5.6% during morning trade after announcing that it would split into two companies.

At the other end of the Stoxx 600, Sweden’s Dometic Group slipped 6.6%, while Rockwool International fell 4.5% on target price cuts from Barclays and Morgan Stanley.



Previous postBicyclist Hit by Pickup Truck in Hit-and-Run Next postFullerton School Officer Charged With Taking Upskirt Photos of 16-Year-Old


Los Angeles Financial times


Copyright © 2022 Los Angeles Financial times

Updates via RSS
or Email