Softer Trade Comments Spark Stock Rebound

World stocks held near two-month lows on Tuesday as slightly more optimistic comments from U.S. and Chinese officials on trade brought some comfort, a day after equities suffered their worst selloff so far this year.

Fear the United States and China are spiraling into a fiercer, more protracted trade dispute that could derail the global economy has rattled investors in recent weeks. The sell-off accelerated on Monday after China announced plans for retaliatory tariffs .



But the Chinese government’s top diplomat said China and the United States have the “ability and wisdom” to reach a trade deal that is good for both. U.S. President Donald Trump said he was optimistic about resolving the trade dispute.

Those signals were enough for now to provide respite to battered markets.

European shares rebounded from two-month lows with London, Frankfurt and Paris 0.5% to 1% higher. And having tumbled more than 2% on Monday, U.S. stock futures suggested Wall Street shares were headed for a stronger open .

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza