Friday 17 August 2018

Markets revive as Trump tariff fears ease

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

Bloomberg

European stock markets surged yesterday, bolstered by the performance across the Atlantic as White House officials indicated that President Trump's trade war rhetoric won't result in tariffs that will stymie growth.

China has already retaliated to tariffs imposed by Mr Trump, with fears of a global trade war having sparked a sell-off in global stocks in recent sessions.

US president Donald Trump tweeted that "we are not in a trade war with China".

But European bourses rebounded yesterday, alongside gains in US indices.

The Dow Jones was 1.4pc higher by early afternoon in New York, while the Nasdaq was up 0.87pc.

The US dollar strengthened and 10-year US Treasury yields also rose.

"After the initial introduction of trade tensions and the back and forth between the US and China and consternation around Nafta, the markets are now beginning to see through the bluster of negotiations and they're dialling back some of their most significant fears of a full on trade war," said Kevin Caron, a senior portfolio manager at Washington Crossing Advisors.

In Ireland, the ISEQ Overall Index followed its European peers higher, ending the session almost 2pc higher at 6,673.20.

Gainers during the day included troubled Swiss-Irish food group Aryzta, whose shares surged 7.8pc in Dublin to €18.55.

Ryanair was up 3.4pc at €16.44, while Bank of Ireland was 4.4pc higher at €7.28.

Decliners included Paddy Power Betfair, which shed 1.4pc to close at €80.20.

The UK's FTSE-100 jumped 2.3pc. Germany's DAX was 2.9pc higher, while France's CAC-40 gained 2.6pc and Spain's IBEX-35 was up 2.4pc.

Irish Independent

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