European stock markets rose sharply this morning, as did Wall Street yesterday, as investors hoped for an easing of trade tensions between the US and China.
The STOXX 600 index of leading European stocks was up 1.8 percent at 9:30 a.m., strengthening for the second day in a row.
London’s FTSE index rose 1.02 percent to 8,415 points, while Frankfurt’s DAX jumped 2.15 percent to 21,750 points, and Paris’ CAC 40 rose 1.43 percent to 7,430 points.
–Growth also in Asian markets–
Stock prices also rose on Asian stock markets. The MSCI Asia-Pacific index was up 0.7 percent at 9:30 a.m.
At the same time, the Japanese Nikkei index strengthened by 1.9 percent, while share prices in Shanghai, Australia, South Korea and Hong Kong rose between 0.1 and 2.4 percent.
–Wall Street made up for losses–
Investors on the world stock markets were encouraged by the strong growth of Wall Street yesterday. The Dow Jones index jumped 2.7 percent, while the S&P 500 rose 2.5 percent and the Nasdaq index 2.7 percent.
With that jump, the indexes made up for all the losses from the previous day, when investors were disturbed by the fierce attack of US President Donald Trump on Fed Chairman Jerome Powell.
But Trump said yesterday that he has no plans to fire Powell, he just wants lower interest rates.
Investors were also encouraged by Finance Minister Scott Bessent’s statement that he believes in the easing of trade tensions between the US and China, although negotiations with Beijing have not yet begun and will likely be slow.
“The market continues to be on a roller-coaster. Some easing of aggression between the US and China, thanks to Bessent’s comments, pushed the market higher,” said Ryan Detrick, strategist at the Carson Group.
Trump later said that he wants a deal with China and that the tariffs will not be close to 145 percent, but they will not be 0 percent either.
