Stock prices rose on Thursday for the next development in the U.S-Chinese trade war, which caused instability in world markets this week, and some concerns about its economic slowdown, after Beijing reported increased exports Reduced
Markets in Europe advanced after sequestration in Shanghai, Tokyo and Hong Kong, recovering some of their losses after three days of concern over trade disputes and the Chinese yuan’s decline.
Investors were also furious on Wednesday with a wave of interest rate cuts by central banks in India, Thailand and New Zealand. Rates have been cut in Australia, South Korea and the Philippines since May and reflect fears that US-Chinese trade tensions will stall global economic growth.
London’s FTSE 100 rose 0.1% to 7,207 and Germany’s DAX rose 0.7% to 11,730. France’s CAC 40 rose 1.1% to 5,324.
On Wall Street, the benchmark Standard & Poor’s 500 index had a future of 0.2%. The Dow Jones Industrial Average climbed 0.1%.
In Asia, the Shanghai Composite Index rose 0.9% to 2,794.55 and Tokyo’s Nikkei 225 rose 0.4% to 20,593.35. Hong Kong’s Hang Seng rose 0.5% to 26,120.77 and South Korea’s Kospi rose 0.6% to 1,920.61.
Australia’s S&P-ASX 200 was 0.7% higher at 6,568.10 and India’s Sensex rose 1.2% to 37,146.63. Markets in Taiwan, New Zealand and Southeast Asia also advanced.
China reported on Thursday that its total exports rose 3.3% from a year earlier, reversing June’s 1.3% contraction. Imports improved by 5.6%, a drop of 7.3% on the previous month. The figures were substantially better than expected.
On Wednesday, the S&P 500 closed down 2% during the day with a 0.1% gain, restoring some confidence in investors, although the perception remains fragile.
Last week, US President Donald Trump created an uproar in the markets when he promised to impose a 10% tariff on Sept 1 on all Chinese imports that have not already been affected by the 25% tariff. China came back on Monday to allow its yuan to weaken against the dollar. A weak currency negates some of the effects of US tariffs, but poses a risk that countries may competitively weaken their currencies, destabilize markets and the economy.
The yuan fell further on Tuesday and Wednesday, but investors were promised by the Chinese central bank that the fall would not continue and the exchange rate would be held steady.
On Thursday, the yuan strengthened slightly to $ 7.0460 from 7.0597 late Wednesday. But it remained under the US currency by a politically sensitive seven that broke on Monday.
US crude, a benchmark in electronic trading on the New York Mercantile Exchange, rose 98 cents to $ 52.07 a barrel. The contract fell $ 2.54 on Wednesday and closed at $ 51.09. Brent crude, used to price international oils, rose 67 cents a barrel to $ 56.90 in London. It fell $ 2.71 from the previous session to $ 56.23.
Currencies: The dollar was down to 105.97 yen as against Wednesday’s 106.26 yen. The euro dipped from $ 1.1200 to $ 1.1197.