Stock markets higher on hopes for stimulus, trade progress
European shares are up for the third straight session, building on a recovery since late last week. Shares in Asia also rose in overnight trade.
Global stocks rallied at the start of the trading week on rising optimism about stimulus measures in China and Germany as investors welcomed more conciliatory signs in the long-running US-China trade war.
Germany’s central bank, the Bundesbank, warned that Europe’s biggest economy could enter a recession in the third quarter, a statement that further fueled expectations that a stimulus program would be coming.
Market watchers also expect further stimulus measures by China to boost growth.
They’re confident too that Federal Reserve Chair Jerome Powell will communicate dovish direction at a big central bank gathering at the end of the week in Jackson Hole, Wyoming.
Analysts also cited the Trump administration’s decision to delay by 90 days a ban on US companies doing business with Huawei.
The move is seen as a conciliatory step in the running US-China trade fight and coming on the heels of statements from US President Donald Trump and other top administration officials emphasizing efforts to revive talks with Beijing.
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