Markets bounce back as hopes rise of thaw in US-China relationsComments Off on Markets bounce back as hopes rise of thaw in US-China relations
Markets rallied today after a torrid week of selling as hopes of improved relations between the US and China calmed investors’ jitters.
The FTSE-100 index gained 41.10 — still down 254 points on the week, but better than many had expected as good news overnight eased worries.
Key to the improved sentiment were signals that Donald Trump was likely to meet Chinese premier Xi Jinping at the late November G20 summit — after the November 6 midterm elections — in what could result in a relaxation of trade wars.
Investec economist Philip Shaw said: “The rhetoric from Trump continues to be tough but when we get through the midterms he might become less belligerent.”
Having been spooked by Trump’s attack on the independent US Federal Reserve for raising interest rates, markets were reassured by his top economic adviser Larry Kudlow insisting in statements late last night that the White House would not interfere with Fed policy.
US futures markets predicting how Wall Street would trade today turned dramatically positive following the G20 and Kudlow news.