Fundamental Comment

Global stocks rally as US, China restart trade talks

Global stocks rally as US, China restart trade talks

Global shares rallied on Thursday after most indices rose on the news of the U.S. agreement with China for a new round of trade talks next month, where also improvement in the situation in Britain and Hong Kong has increased risk appetite.

The Japanese index Nikkei 225 index rose 2.12 percent at 21,122.34 points. The Shanghai Composite Index was 0.96 percent up, jumping above 3,000 points for the first time in two months and South Korea's index Kospi index rose 0.82 percent at 2,004.75.

Hong Kong based Hang Seng index fell 0.03 percent at 26,515.53. 

Earlier today, China's Commerce Ministry announced that its Chief Commissioner had reached out to the U.S. Trade Representative to define an agreement at a meeting in Washington in October. 

The phone call last night went “very well” and will try to make “real progress” during the meeting in October, Spokesman Gao Feng said.

The trade war saw a recent escalation last Sunday, when the United States and China exchanged a new round of tariffs on each other's goods, which played a major role in re-instilling fears for global markets.

European shares traded near the highest level in month, where the Euro STOXX 600 soared 0.54 percent at 385.24.

Despite an unexpected slump in German factory orders in July, the German DAX 30 index gained 0.74 percent at 12,114.63.

Italy’s FTSE MIB added 0.55 percent and France’s CAC 40 augmented 0.84 percent, While Britain’s FTSE 100 slipped 0.57 percent.

As of 09:52 GMT, the euro traded higher for a third straight session versus the U.S. dollar at 1.1044, resuming its rebound attempts after falling to its lowest level since May 2017 on September 3.

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