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Global stocks rise as investors react with optimism to US-China trade talks

US and European stocks climbed today with the FTSE 100 closing higher as investors reacted optimistically to US-China trade talks.

In America, the Dow Jones industrial average rose 0.6 per cent after opening at 1.30pm UK time, while the benchmark S&P 500 stock index rose 0.4 per cent.

Read more: EU trade surplus with US grows as deficit with China rises

Despite political turbulence, Britain’s FTSE 100 rose 0.62 per cent over the course of the day before closing, having gained 45 points. Sterling’s fall in reaction to the Brexit vote may have helped push the index up by cheapening companies’ exports.

In Europe the Euronext 100 index, representing the largest companies on the Parisian stock market, rose 0.8 per cent over the course of the day.

Germany’s benchmark Dax index rose 0.86 per cent, while the Stoxx 600 index, comprised of companies from across the continent, rose 0.55 per cent.

Stock markets rose after the US and China wrapped up a round of trade talks in Beijing overnight. US Treasury secretary Steve Mnuchin Tweeted this morning that trade talks were “constructive”, saying that they would continue in Washington next week.

 

In Asia, the Shanghai composite index rose 3.2 per cent overnight while Hong Kong’s Hang Seng rose 0.96 per cent and Japan’s Nikkei rose 0.82 per cent.

City Index senior market analyst Fiona Cincotta said: “Optimism that the US and China were moving towards a trade agreement has boosted risk appetite. Whilst any agreement could still be some months in the making, economic advisor Larry Kudlow hinted that some tariffs on Chinese imports could be removed.”

She said: “Progress in the US-Sino trade dispute is ensuring a strong end to the quarter for equities, despite lingering concerns over the health of the global economy.”

Read more: US-China summit delayed until negotiations to end trade war are finalised

Michael Hewson, chief market analyst at CMC Markets UK, said: “It’s been a fairly decent quarter for European equities, and global equities in general, and a welcome respite after the large downdraft that blew through the markets at the end of last year, though we haven’t been able to unwind all of those losses.”