Stocks Jump With Bond Yields on Trade-News Relief: Markets Wrap - Ester Holdings

Stocks Jump With Bond Yields on Trade-News Relief: Markets Wrap

Bloomberg.com — Stocks jumped on Monday alongside China’s yuan and Treasury yields after the U.S. and China declared a truce in their trade war. Oil surged on optimism producers will address a glut in global supply.

Shares soared from Sydney to Shanghai and futures on U.S. and European benchmarks climbed more than 1.5 percent after Presidents Donald Trump and Xi Jinping agreed to hold off on the introduction of new tariffs and intensify trade talks. The Aussie and emerging-market currencies climbed against the dollar. Ten-year Treasury yields rose back above 3 percent.

The euro strengthened on news in Italian media that the government may accept a lower deficit target. Crude climbed following a Saudi Arabia-Russia agreement and plans for a supply cut from Canada’s Alberta province.

Trump and Xi promised to halt any new tariffs for 90 days as the countries continue negotiations. The U.S. had been scheduled to push ahead on Jan. 1 with increased tariffs on $200 billion worth of Chinese goods. Trump also said on Twitter that China has agreed to reduce and remove tariffs on cars coming into the country from the U.S.

“The meeting that we saw over the weekend was very much positive in terms of market sentiment,” said Kerry Craig, a Melbourne-based global market strategist at JPMorgan Asset Management of the Trump-Xi talks. “So there’s a small ray of sunshine here but it’s too early to be very positive on the outcome.”

Also on the sidelines of the Group of 20 summit in Buenos Aires: Russian President Vladimir Putin announced that he and Saudi Arabia’s Crown Prince Mohammed bin Salman had agreed to extend into 2019 their deal to manage the oil market. On a separate front, Qatar said Monday it would withdraw from the OPEC group from January.

Elsewhere, the pound ticked higher even as the threat of a vote to bring down British Prime Minister Theresa May’s government looms should Parliament reject her Brexit deal. That raises the stakes even further as lawmakers begin debating her plan this week.

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