Global stocks edge higher as Trump acts to ease China trade tensions
Stocks had fallen sharply in Asia before Trump spoke as investors panicked that the latest tit-for-tat tariffs would damage global growth. On Friday, Trump announced an additional duty on some $550 billion of targeted Chinese goods, hours after China unveiled retaliatory tariffs on $75 billion worth of U.S. goods. The MSCI world equity index, which tracks shares in 47 countries, remained 0.31% lower by 1000 GMT.
European equity markets had looked set to follow their Asian counterparts deep into the red but recovered when U.S. President said China had contacted Washington overnight to say it wanted to return to the negotiating table. Beijing called for calm.
European stock markets struggled to bounce to the same degree, with the pan-European Eurostoxx down marginally on the day. Germany's DAX rose 0.29% while France's managed a 0.48% rise. London's markets were closed for a holiday. The 10-year bond in Germany rose 2 basis points to -0.657%.
On Monday stock markets clawed themselves off their lows, but sentiment remained fragile after the latest flare-up in the U.S.-China trade war sent investors scrambling into government bonds and battered emerging market currencies.
Speaking on the sidelines of a summit of major industrialized nations in France, Trump hailed Chinese President Xi Jinping as a great leader and said he welcomed his desire for a trade deal and for calm - soothing investors' nerves after a round of more tariffs were abruptly announced on Friday. Wall Street futures turned positive and were last up 0.5%.