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US stocks boosted by report of possible lifting of China tariffs
NEW YORK, Jan 18, 2019 (BSS/AFP) – Wall Street stocks climbed for a third
straight session on Thursday following a report the US could lift sanctions
on China while leading bourses in Europe and Asia retreated.
US stocks were little changed through early afternoon but suddenly jumped
higher after The Wall Street Journal reported Treasury Secretary Steven
Mnuchin had proposed lifting some or all tariffs on China as a way to
reassure markets and bolster the odds of a bigger trade deal.
But the article described the idea as part of a policy debate between
Mnuchin and US Trade Representative Robert Lighthizer, who is more hawkish on
China.
The Treasury Department told AFP on Thursday that no formal recommendation
had been made by either Mnuchin or Lighthizer in the talks, which were
“nowhere near completion.”
Among those shares that got a boost, Boeing, Caterpillar and General
Motors gained at least one percent. All three depend on China for a
significant portion of sales.
Worries about the US-China trade war had been a headwind earlier in the US
session and a factor in down sessions across major European and Asian markets
following reports that US officials were carrying out a criminal probe into
Chinese tech giant Huawei and could soon bring indictments over allegations
of theft of trade secrets from its American business partners.
US lawmakers have also introduced a bill to ban the export of American
parts and components to Chinese telecom companies that are in violation of US
export control or sanctions laws — with Huawei and fellow Chinese firm ZTE
the likely targets.
– Pound rises –
Meanwhile, in Britain, Prime Minister Theresa May scrambled to put
together a new Brexit strategy with cross-party talks after MPs sparked
political turmoil by rejecting her previous agreement with the EU.
May reached out to rival parties shortly after surviving a no-confidence
vote on Wednesday, hoping to hammer out a Brexit fix that she could present
to parliament next week.
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Despite the impasse, the pound rose again against both the dollar and the
euro.
“The market assumes that at very least the status quo will prevail and at
minimum Article 50 will be delayed until a more palatable solution is found,”
said BK Asset Management’s Boris Schlossberg.
“But the state of uncertainty is taking its toll on UK business and there
is little doubt that any and all investment planning has come to a grinding
halt,” he added.
– Key figures around 2130 GMT –
New York – DOW: UP 0.7 percent at 24,370.10 (close)
New York – S&P 500: UP 0.8 percent at 2,635.96 (close)
New York – Nasdaq: 0.7 percent at 7,084.46 (close)
London – FTSE 100: DOWN 0.4 percent at 6,834.92 (close)
Frankfurt – DAX 30: DOWN 0.1 percent at 10,918.62 (close)
Paris – CAC 40: DOWN 0.3 percent at 4,794.37 (close)
EURO STOXX 50: DOWN 0.3 percent at 3,069.35 (close)
Tokyo – Nikkei 225: DOWN 0.2 percent at 20,402.27 (close)
Hong Kong – Hang Seng: DOWN 0.5 percent at 26,755.63 (close)
Shanghai – Composite: DOWN 0.4 percent at 2,559.64 (close)
Pound/dollar: UP at $1.2937 from $1.2877 at 2200 GMT
Euro/pound: DOWN at 87.67 pence from 88.44 pence
Euro/dollar: DOWN at $1.1391 from $1.1392
Dollar/yen: UP at 109.19 yen from 109.09
Oil – Brent Crude: DOWN 14 cents at $61.18 per barrel
Oil – West Texas Intermediate: DOWN 24 cents at $52.07 per barrel
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