The global stock index rose on Monday and the dollar recovered after previous losses, with US President Donald Trump saying Chinese officials had contacted Washington to resume trade talks after signs of escalation in the US-China trade dispute shook the markets earlier in the day.
Chinese President Liu followed the comments of US President and said China was willing to resolve the trade dispute through “calm” negotiations. European equities rebounded after the relaxation of rhetoric between Washington and Beijing, while US stocks rose.
U.S. stocks rose more than 1% on the easing of rhetoric between Washington and Beijing, while European stocks recovered most of their early losses. As investors returned to riskier assets, U.S. Treasury yields bounced off session lows, while the Japanese yen reversed course to trade lower against the dollar and gold eased from a six-year high.
The dollar index also shed losses to trade higher, last rising 0.4%. The Chinese yuan, which had fallen to an 11-year low in the onshore market and hit a record low in the offshore market, pared losses. In the offshore market, the Chinese yuan was last down 0.5% at 7.1683 per dollar.
Previously, Asian equity markets had fallen and European equities seemed poised to do the same after China and the United States announced new tariffs on their exports. On Friday, Trump announced an additional $ 550 billion worth of targeted Chinese products, just hours after China announced $ 75 billion worth of retaliation for US goods.
On Wall Street, the Dow Jones Industrial Average rose 190.17 points, or 0.74 per cent, to 25,819.07, the S&P 500 gained 20.99 points, or 0.74pc, to 2,868.1 and the Nasdaq Composite added 70.02 points, or 0.9pc, to 7,821.78.
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16 November, 2019