People walk by an electronic stock board of a securities firm in Tokyo, Monday, Dec. 3, 2018 . Shares are advancing in Asia following the meeting between Presidents Donald Trump and Xi Jinping, who agreed moderate tensions over trade. (AP Photo/Koji Sasahara)

Shares climb in Europe, Asia on Trump-Xi tariffs truce

December 03, 2018 - 4:14 am

SINGAPORE (AP) — Shares surged Monday in Europe and Asia after the U.S. and China reached a 90-day truce in a trade dispute that has dampened global growth and rattled investors worldwide.

KEEPING SCORE: Germany's DAX climbed 2.5 percent to 11,542.49 and France's CAC 40 was up 2 percent at 5,101.80. Britain's FTSE 100 added 2.2 percent to 7,135.62. Wall Street was poised for a buoyant day as the Dow future contract jumped 2 percent to 26,051.00. The broader S&P 500 futures climbed 1.8 percent to 2,808.20.

ASIA'S DAY: Hong Kong's Hang Seng surged 2.6 percent to 27,182.04 and the Shanghai Composite index jumped 2.6 percent to 2,654.80. Japan's Nikkei 225 index climbed 1 percent to 22,574.76 and the Kospi in South Korea jumped 1.7 percent to 2,131.93. The S&P ASX/200 in Australia added 1.8 percent to 5,771.20. Shares rallied in Taiwan and throughout Southeast Asia.

G-20 SUMMIT: President Donald Trump and his Chinese counterpart Xi Jinping dined together at the G-20 summit over the weekend and called a cease-fire, lasting for at least 90 days, to allow time to smooth out a dispute over Chinese technology policies that the U.S. and other trading partners consider predatory. Trump will hold off on plans to raise tariffs on $200 billion in Chinese goods, which were supposed to kick in on Jan. 1. In return, Xi agreed to buy a "very substantial amount" of agricultural, energy and industrial products from the U.S. to reduce its large trade deficit with China, the White House said. The truce could steady financial markets until the end of the year, analysts said, but any bumps in negotiations would bring on more volatility.

ANALYST'S TAKE: "Thankfully for risk sentiment, the 'dinner date of the decade' ended with a sense of harmony rather than trade war discord," Stephen Innes of OANDA said in a market commentary.

ENERGY: Oil prices were steady after the tiny, energy-rich Arab nation of Qatar said Monday it will withdraw from OPEC in January. The surprise announcement again threw into question the role of the cartel after it need non-members to push through a production cut in 2016 after prices crashed below $30 a barrel. OPEC members and other major producers are due to meet in Vienna on Thursday and discuss 2019 output levels in the face of falling prices. Benchmark U.S. crude gained $2.32 to $53.25 per barrel in electronic trading Monday on the New York Mercantile Exchange. It lost 52 cents to finish at $50.93 a barrel on Friday. Brent crude gained $2.44 to $61.90 per barrel. It dropped 45 cents to $59.46 a barrel on Friday.

CURRENCIES: The dollar fell to 113.49 yen from 113.51 yen late Friday. The euro strengthened to $1.1352 from $1.1320.

AP Editorial Categories: 
Comments ()