- Trade Talks: Stocks Rally; Haven Assets Slip
Stocks gained across Asia and Europe on Friday as the world’s two largest economies prepare to meet next week.
The trade tension between the U.S and China has weakened global economic outlook and increased global risk as businesses and investors have already started struggling with the surge in input cost due to tariffs.
Tim Cook, Apple CEO, on Wednesday, blamed the trade dispute for the drop in Apple sales and global slow down that plunged the company’s market capitalisation and projection for the first time in two decades.
However, with the delegates from the two countries scheduled to meet next week, the financial market rebounded slightly on Friday and expected to sustain the rally next week if an agreement is reached and vice versa.
President Trump and Xi Jinping of China had agreed to a 90-day truce last month in Argentina, saying the three months space would allow both nations to draft a balanced agreement between the two world’s largest economies.
The Stoxx Europe 600 Index pared losses as every sector rebounded, while most Asian shares advanced except for Japan.
The haven currency, Japanese Yen, gave up part of its gains to trade at 108.16 against the U.S. dollar.