In Asian Equity Markets indices traded higher Monday after Presidents Donald Trump and Xi Jinping agreed to a temporary trade truce between the United States and China. The Shanghai composite gained 2.3 percent. Meanwhile, Hong Kong’s Hang Seng index also jumped 2.5 percent. Japan’s Nikkei 225 rose 1.28 percent while the Topix index advanced 1.40 percent. In South Korea, the Kospi gained 1.63 percent. Over in Australia, the ASX 200 jumped 1.60 percent with almost all sectors in positive territory.
In Currency Markets the US dollar weakened across the board on Monday as investor demand for riskier assets rose after China and the U.S. agreed to a ceasefire in their trade war that has shaken global markets. The White House said on Saturday that President Donald Trump told China’s President Xi Jinping at the G20 talks in Argentina that he would not raise tariffs on $200 billion of Chinese goods to 25 percent on Jan. 1 as previously announced. Riskier currencies such as the Australian dollar and New Zealand dollar rallied 0.6 percent and 0.3 percent respectively.
In Commodities Markets oil prices jumped higher on Monday after the United States and China agreed a 90-day truce in their trade conflict and ahead of a meeting by producer club OPEC this week that is expected to result in a supply cut. The trade war between the world’s two biggest economies has weighed heavily on global trade, sparking concerns of an economic slowdown. U.S. West Texas Intermediate (WTI) crude futures were at $53.38 per barrel up 4.8 percent from their last close. International Brent crude oil futures were up 4 percent, at $61.84 a barrel.
In US Equity Markets rose on Friday as investors hoped for progress on trade in a critical U.S.-China meeting over the weekend, and the S&P 500 and the Nasdaq posted their biggest weekly percentage gains in nearly seven years. The S&P 500 rose 0.82 percent, to 2,760.16 and the Nasdaq Composite added 0.79 percent, to 7,330.54. Of the 11 major sectors in the S&P 500, all but energy ended the session in positive territory. Shares of Marriott International Inc fell 5.6 percent after the hotel operator said hackers stole about 500 million records from its Starwood Hotels reservation system.
In Bond Markets U.S. Treasury futures fell as trading for the week ahead kicked off late on Sunday with investors back in a risk-taking mood after China and the United States agreed to shelve any new tariffs and reset discussions. The benchmark 10-year Treasury note futures contract dropped 5/32 of a point in early trading, indicating that yields on nominal Treasuries, which move in the opposite direction of prices, will rise when that trading begins later on Sunday. The 10-year note yield closed Friday just shy of 3 percent.