Tuesday marked a day of recovery on international financial markets. The 90-day extension of the tariff truce between Washington and Beijing sparked a wave of confidence, propelling Japan’s Nikkei index to a record high, while European companies reported stronger-than-expected quarterly results, giving investors a new lease of life.
The decision by the United States and China to extend their 90-day tariff truce has dispelled, at least temporarily, one of the most threatening clouds hanging over the global economy. The announcement immediately restored investor confidence, triggering a bullish trend on most markets. In early trading, the Paris stock exchange rose 0.53%, Frankfurt 0.18%, London 0.29% and Milan 0.41%.
In New York, Nasdaq and S&P 500 futures showed mixed results at midday (+0.093% and -0.25% respectively), a sign that traders were cautiously incorporating the news into their expectations. Caution remained the order of the day ahead of the release of US inflation figures, a crucial indicator for determining the future direction of the Federal Reserve’s monetary policy.
In Asia, the effect was immediate. Investors, relieved by the prospect of a calmer trade dialogue, massively supported export stocks. This reaction was reinforced by accommodative monetary interventions in several countries in the region, contributing to a climate of widespread optimism.
Europe regains momentum
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