Editor in Chief: Moh. Reza Huwaida Monday, December 16th, 2019

Markets Mostly Rise as Beijing And Washington Avert Trade War

Markets Mostly Rise as Beijing And  Washington Avert Trade War

LONDON - Asian and European markets mostly rose Monday after the US and China said they had agreed to hold off imposing tariffs, averting a damaging trade war, at least for now. In late morning deals, London stocks rose 0.8 percent and Paris stocks were up 0.6 percent, while Frankfurt was shut for a public holiday. The Milan stock market however dropped 0.3 percent, hit by concerns over Italy’s new populist government after recent inconclusive elections. In foreign exchange activity, the dollar extended gains against major rival currencies. After high-level talks in Washington, economic superpowers China and the United States revealed a deal had been hammered out, ending months of tension that had sent financial markets into a frenzy. Treasury Secretary Steven Mnuchin told Fox News on Sunday that “right now we have agreed to put the tariffs on hold” while Xinhua reported China’s Vice Premier Liu He as saying “the two sides reached a consensus, will not fight a trade war, and will stop increasing tariffs on each other”.
While short on detail, the announcements provided much relief to investors, who had been fearing the imposition of levies on billions of dollars of exports between the two sides. (AFP)