Presidents of the world’s two biggest economies spoke for the first time in months this week, driving global equities up amid optimism on global trade moving forward.
- American indices edged higher premarket with the Dow Jones, the S&P 500, and the Nasdaq hinting at a rebound after Thursday’s decline. Asian indices such as the Shanghai Composite, the Hang Seng, and Nikkei also climbed.
- Market analysts attribute the rally to the talks between US President Joe Biden and Chinese President Xi Jinping. This is expected to boost global trade and drive oil prices and other asset prices.
- The White House said that the topics discussed are where interests converge and where interests, values, and perspectives diverge. The leaders also agreed to engage on issues and ensure that competition does not lead to conflict.
- Growth was also seen in other overseas indices such as the FTSE 100, the Euro Stoxx 50, and Frankfurt’s DAX, even as the European Central Bank announced the tapering of pandemic emergency asset purchases.
Oil prices also recovered from the selloff the previous day, as China unveiled plans to unload reserves to ease manufacturing prices.
WTI is up 1.79%, and Brent is up 1.72%
Source: Markets Insider