Plus   Neg

European Shares Seen Rising After US Tariff Delay

stockmarkets aug17 12sep19 lt

European stocks are likely to open higher on Thursday as trade-war tensions eased and investors seem convinced that the world's major central banks will ride to the rescue with aggressive monetary stimulus.

Asian markets rose along with the Chinese yuan after U.S. President Donald Trump agreed to delay an additional increase in tariffs on $250 billion worth of Chinese goods by two weeks "as a gesture of goodwill".

Trump said the postponement came at the request of the Vice Premier of China, Liu He, as the People's Republic of China celebrate their 70th Anniversary.

Safe-haven assets such as the Japanese yen, U.S. Treasuries, and gold weakened in a sign of improving appetite for risk, as the gestures of goodwill raised hopes for a breakthrough in the year-long U.S.-China trade dispute.

Oil prices rose in Asian deals after plunging nearly 3 percent on Wednesday following a downward revision in OPEC's oil demand forecast and amid speculation that the U.S. may ease sanctions on Iran.

Investors await a meeting of European Central Bank (ECB) later today in which the central bank is expected to dole out stimulus and cut interest rates, given the risks posed by Britain's divorce from the European Union.

The announcement is due at 7.45 am ET. President Mario Draghi will hold his customary press conference at 8.30 am ET.

Data from the Royal Institution of Chartered Surveyors revealed earlier in the day that U.K. property sales will likely fall over the next three months as Brexit uncertainty continues to drag sentiment.

The index for expected sales volume for the coming three months declined to -23 in August from -4 in July. The house price balance rose to -4 from -9.

Overnight, U.S. stocks rose as President Trump called for zero percent interest rates and China granted tariff exemptions for 16 types of American-made products as a sign of goodwill ahead of the next round of trade talks.

The Dow Jones Industrial Average gained 0.9 percent, the tech-heavy Nasdaq Composite climbed 1.1 percent and the S&P 500 added 0.7 percent.

European markets ended Wednesday's session higher as investors looked ahead to key central bank meetings.

The pan European Stoxx 600 advanced 0.9 percent. The German DAX rose 0.7 percent, France's CAC 40 index gained 0.4 percent and the U.K.'s FTSE 100 rallied 1 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT