Following remarks by President Donald Trump, predictions of another Fed rate cut and mounting hope that the US and China are getting closer to a trade agreement boosted global markets Monday morning. The confidence buoyed stock exchanges throughout the world and erased gains in safe-haven assets like gold futures.
However, except Milan’s FTSE MIB, which saw a 0.61% increase, the other European benchmark indexes began largely unchanged. By 11:00 CEST, the Madrid IBEX 35 had likewise increased by 0.37%.
The London-based FTSE 100 and the European benchmark STOXX 600, meanwhile, stayed essentially unchanged. While Paris’ CAC 40 lost less than 0.1%, Frankfurt’s DAX increased by 0.15 percent. This followed Moody’s credit rating agency’s Friday shift of France’s outlook from stable to negative.
In pre-market trading on Monday, US futures were largely higher globally. This coincided with a surge in Asian stocks as well, with the benchmark Nikkei 225 in Japan surpassing 50,000 for the first time.
On the sidelines of the Asia-Pacific Economic Cooperation summit, or APEC, the US president is due to meet with Chinese leader Xi Jinping later this week to discuss the trade agreement between the two most powerful economies in the world.
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