Stock markets in Europe traded higher on Friday, up from recent slumps occasioned by intensified U.S. – China trade tensions and seemingly unstable economic outlooks in the region.
U.S. President Donald Trump’s most recent pronouncement on the trade war was that Washington and Beijing were on the verge of a consensus, a sentiment that brought some relief to investors.
Trump also said that Huawei would be part of the trade agreement.
Chills, however, remain as European Parliament elections and British Prime Minister Theresa May’s resignation likely to push markets down in the short term.
London’s blue-chip FTSE 100 index companies were among the top gainers with 0.4 percent closing at 7,259.59 points.
Companies in the euro zone gained compared to Thursday’s postings. Frankfurt’s DAX 30 rose by 0.6 percent with 12, 027.31 points and Paris CAC 40 had an increase of 0.5 percent closing at 5, 307.80.
Global equities fell yesterday and could be headed down despite the rebound as uncertainty in Europe, and the delicately balanced Sino-U.S. talks continue to weigh on investors.
Since Trump imposed restrictions on Chinese telecom Huawei from accessing the U.S. market and also sending stern on Americans not to sell components to the company, the rivalry has worsened.
In currencies, the sterling was down on Friday, slipping to its four-month low as it struggled in recent weeks. It has been so tough for the pound as U.K’s Brexit deal teetered and calls mounted for Theresa May to go.
According to Jasper Lawler the London Capital Group analyst, the pound could become more volatile amidst Theresa May’s resignation. The upside could see it snap its losses in recent weeks.
Elsewhere, Wall Street has also gained following the supposed easing of tensions between the U.S. and China. The Dow Jones Industrial Average rose 166.89 points, or 0.66%, at 25,645.56.
The S&P 500 gained 0.62% or 17.61 points at 2,839.85 while the Nasdaq Composite saw its index up 0.86% or 65.24 points at 7,693.52. However, the dollar is down against the Japanese yen, the euro and the pound.