LONDON (Reuters) – European equity futures went through early trading on Monday and hit their highest level since August 2018 as investors plunged into assets Considered more risky after Washington and Beijing agreed to resume trade negotiations and avert an increase in a prolonged dispute.
Eurostoxx 50 futures () was 1
Paris July's futures were 1% higher.
The deals came after the United States and China agreed on Saturday to resume trade negotiations after President Donald Trump offered concessions to his Chinese counterpart Xi Jinping when the two met on the sidelines of the G20 summit in Japan.
These included no new tariffs and a relaxation of restrictions on Chinese tech company Huawei [HWT.UL] to reduce tensions with Beijing. China decided to make unspecified new purchases of US agricultural products and return to the negotiating table.
The eradication of the world's No. 2 smartphone maker is expected to give chipmakers an extra boost – in Germany's Infineon (DE :), up to 3%.
With approx. 6% or approx. DKK 80 billion Euro (90.6 billion USD) of its income income from China, Germany's DAX () is often used as a proxy to bet on a trade war.
While investors welcomed the new ceasefire between the world's two largest economies, ING's Raoul Leering, head of international trade analysis, has warned.
"Neither the US nor China reported that any of the inconsistencies that turned out to be breakdowns in May are closer to being resolved. So much work needs to be done to prevent another negotiation of negotiations," she said.
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