Trump in China Trade Extension Spears Rally Trump administration star-news.press/wp

Donald Trump’s decision to extend the truce in the trade war with China has gathered the stock market around the world.

On Monday night, the US president signed an executive order extending the deadline for a higher tariff in China until November 10. Beijing said early on Tuesday that he would hang an additional tariff for American goods for another 90 days.

In response, the markets in Japan and Australia have achieved record levels on Tuesday, with expectations that the United States and China could secure a commercial agreement before the end of the 90 -day stoppage on an additional tariff.

The Nikkei’s participation index in Tokyo increased by up to 2.5 % to 42,867.69 points on Tuesday, while the Australian ASX 200 index increased by 0.14 %, reaching an increase of 8828,67. Its momentum was helped by the Australian Reserve Bank to reduce the main interest rate to its lowest level in two years of 3.6 %.

In China, the Shanghai complex index increased by 0.5 %. Hang Kong Hang Singh Index remained widely flat.

The stock markets in Europe also opened on Tuesday morning. In the UK, the FTSE 100 index of blue -sex companies increased by 0.4 % in early trading, with the local FTSE 250 domestic index increased by 0.4 %.

In Germany, the DAX 40 index increased by 0.3 %, while the French CAC 40 rose 0.5 %. The Stoxx EUROPE 600, which tracks the largest companies on the continent, increased by 0.4 %.

Investors hope that the negotiators can secure a commercial deal during the period of stopping the additional definitions. Trump had previously threatened tariff rates of 245 % on Chinese imports, while Beijing threatened the 125 % revenge definitions.

Under the current rules, American exports to China are subject to rates of about 30 %, with imports from China under 10 %, in addition to an additional tariff of 20 % related to Al -Fantanil smuggling allegations Against China. American exports to China are subject to definitions of about 30 %.

Economists have warned that Trump’s trade war system, especially against China, could seriously harm global economic expectations, as it may lead to high costs of supply chains and reduce international trade.

Mark Hevelli, from Swiss Bank, said that the commercial truce represents “an encouraging step towards finding an agreement between Washington and Beijing that would avoid a major disturbance in global commercial flows.”

He said: “We believe that the additional time can result in concessions from both sides on many issues that have not been resolved, including fentanel flows, rare land controls, as a technology export stand, and the purchase of Russian oil.”

Oil prices also rose on Tuesday amid the hope that the trade war will get rid of. Brent crude futures increased by 0.4 % to $ 66.90 a barrel, while crude intermediate contracts in West Texas intermediate increased by 0.4 % to $ 64.20.

In the United States, S&P futures increased by 0.1 %. Jim Reed, from Deutsche Bank, said that investors in Wall Street will closely monitor how customs duties were liquidated to consumer prices.

The United States will report the official inflation numbers for July on Tuesday afternoon. Reed said that US economists at the bank expect the Consumer Prices Index (CPI) to 3 %.

In June, Core CPI, which comes out of energy and food prices, rose to 2.9 %, up from 2.8 % in May. Prices of devices, furniture, games and products that are usually manufactured outside the United States, all have risen.