European stock markets surge on China-US trade breakthrough hopes

19th January, 2019 10:18:08 printer

LONDON: Stock markets across the globe powered higher Friday, buoyed by hopes of a breakthrough in efforts to defuse a US- China trade war.

European and Asian indices bounced back strongly after the Wall Street Journal (WSJ) reported that the US was considering lifting tariffs on China as officials look to hammer out a trade deal, reports AFP.

In the late New York morning, the Dow Jones was also up, having already gained on Thursday on the report which helped the market recover from a wobble triggered by news that the US was carrying out a criminal probe into Chinese tech giant Huawei.

“Global markets are enjoying an overwhelmingly bullish end to the week, with hopes of a potential breakthrough in US-China trade talks helping drive optimism,” said Joshua Mahony, senior market analyst at traders IG. The dollar also firmed.

The WSJ reported that US Treasury Secretary Steven Mnuchin had raised the idea with US Trade Representative Robert Lighthizer of removing some or all levies on Beijing in return for structural reforms.