A truce in the U. S.-China trade war boosted global stocks to their highest in roughly three weeks on Monday, while triggering a dollar sell-off and pushing the Chinese yuan and several trade-dependent currencies higher.
NEW YORK (Reuters) – A truce in the U. S.-China trade war boosted global stocks to their highest in roughly three weeks on Monday, while triggering a dollar sell-off and pushing the Chinese yuan and several trade-dependent currencies higher.
The equities rally followed an agreement on Saturday between Washington and Beijing at the G20 summit in Argentina calling for a 90-day trade tariff truce. Oil prices jumped nearly 4 percent.
“Today is mostly about celebrating the fact that the U. S. and China have delayed what could have been the some of the worst-case scenarios regarding their trade relations,” said Michael Arone, chief investment strategist at State Street Global Advisors.
Still, major U. S. indexes closed below their highs from earlier in the session. Arone noted some “very sticky” issues remain unresolved between the world’s two top economies.
The Dow Jones Industrial Average. DJI rose 287.97 points, or 1.13 percent, to 25,826.43, the S&P 500. SPX gained 30.2 points, or 1.09 percent, to 2,790.37 and the Nasdaq Composite. IXIC added 110.98 points, or 1.51 percent, to 7,441.51.
The pan-European STOXX 600 index rose 1.
