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STOCKS-EUROPE-MARKETS
European stock markets climb on upbeat Trump trade comments
LONDON, Sept 27, 2019 (BSS/AFP) – European stock markets rose Thursday
after US President Donald Trump said a trade deal with China could come
sooner than expected, and also reported steps towards a new agreement with
Japan.
But US equities came under pressure from political upheaval in Washington,
analysts said.
Trump, Wednesday at the United Nations, said a deal with China was getting
closer, sending equities higher despite concerns over the launch of an
impeachment inquiry against the mercurial leader.
The remarks came just a day after Trump railed against Chinese “abuses” at
the UN summit, comments that had been seen as among the factors causing
stocks to fall Tuesday.
Connor Campbell, analyst at Spreadex trading group, said “investors chose
to buy into Trump’s trade optimism, allowing the markets to push higher”.
Trump also said Washington and Tokyo had taken a major step towards
sealing a comprehensive new trade deal, which will see Japan cut tariffs on
$7 billion of US farm exports while the US would cut tariffs on some Japanese
agricultural goods.
– Sliver of optimism’ –
“Investors have been ‘trade war’ bearish for so long that any sliver of
optimism is cheered,” Stephen Innes, Asia Pacific market strategist at
AxiTrader, said in a note.
The Japanese deal also “suggests the president is open to an ‘interim’
trade deal, possibly signalling he is willing to negotiate one with China”,
Innes said.
European stock markets were firmly in the black in the mid-afternoon, with
London the standout
Wall Street, which had opened a touch higher, slipped into negative
territory as traders weighed an impeachment process against Donald Trump
after a whistleblower complaint said the president had sought to use the
power of his office to pressure Ukraine into helping him with his 2020
campaign.
Analysts say the market’s attitude towards the new impeachment inquiry is
wait-and-see.
Earlier, Asian markets had cheered Trump’s comments on trade.
Crude prices slipped after an unexpected rise in US inventory and a swift
recovery in Saudi Arabia’s output following the September 14 attacks on its
oil infrastructure.
BSS/AFP/HR/1025