Global stocks largely shrugged off new US tariff measures on China on Friday as officials agreed to continue trade negotiations, while ride-hailing company Uber tumbled in its long-awaited market debut.
Wall Street endured a roller-coaster session, with the Dow shedding more than 350 points early in the session in the hours after Washington raised duties on $200 billion in Chinese imports to 25 percent from 10 percent.But investors were cheered by President Donald Trump's upbeat comments after the talks ended with no deal, but also no breakdown. That helped the Dow score a 0.4 percent gain on the session, reports AFP.
"The markets are putting an optimistic spin on very little information," said Maris Ogg of Tower Bridge Advisors. "The message we got is more 'We'll keep talking, stay tuned,'" she added. "It creates more uncertainty and leaves the market in a limbo." Russ Mould, investment director at stockbroker AJ Bell, said markets were adopting a wait-and-see approach despite the latest US tariff measures - and he suspected that a deal would eventually be clinched. Mould said, "Investors hate uncertainty as it leads to speculation about what might and might not happen.
Once they have the real facts, investors can properly assess the situation." "I suspect that markets still believe a deal can and will be done, because both President Xi and President Trump need one." Earlier, Paris and Frankfurt finished higher, while London and Tokyo fell modestly.
European markets also got a boost from strong economic data, including accelerated British economic growth, and a stronger trade surplus for Germany. Frankfurt's Dax index outperformed its European peers largely thanks to a whopping surge in Thyssenkrupp shares which rose over 20 percent after the steel conglomerate said it was dropping its merger plans with Tata of India.
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