Wednesday brought great news to the western stock market as European stocks saw a significant rise, following the conclusion of trade talks between China and the U.S.
During the weekend, analysts and investors provided mixed reactions to the trade negotiations that could largely affect the World Bank's prediction of a declining global market this year. However, as news emerged of a potential amicable agreement between the warring countries, the stock market started to calm down.
The trade deliberation was supposed to end Tuesday but after U.S. President Donald Trump tweeted that things were going well at Beijing's meeting, it was announced that the negotiations will be extended. By Wednesday, European stocks, including STOXX 600 and FTSE, hit highs at 0.9 percent and 0.8 percent respectively, as reported by Reuters.
Financial specialists are positively looking forward to a trade deal soon. Italian firm Banca Ifigest's fund manager, Roberto Lottici said, "My scenario is that of an economic slowdown but I expect things to get gradually better following a brutal 2018 dominated by tariffs and very harsh commercial rhetoric."
A few shares saw a dip amid the trade talks such as Sainsbury's and AMS. While there are individual stock dips across the stock market, the inflation in Europe's stocks as a whole has sparked optimism in the West and other countries assuming the impact of the China-U.S. trade disputes.
2018 wasn't the best year for European equities but with the recent stock hike, experts believe things may get better as long as the China-U.S. trade exchange continues to stipulate optimism.
Among the stocks that saw a notable hike are BMW, SXAP, and Daimler as the numbers went up at 1.9, 2.8, and 3.3 respectively.
According to CNBC, the Chinese and U.S. delegations decided to prolong the highly anticipated trade talks after Tuesday's meeting saw significant developments in some aspects, including energy commodities.
Before news of a stock hike in European markets came out, concerns over a potential economic crisis across industries all over the world were rife. These concerns stem from the World Bank's Tuesday prediction of slowing global market growth in 2019.
The trade talks between China and the U.S. is followed by President Xi Jinping and President Trump's failure to close a trade deal on December. A tariff truce is up and is expected to be terminated in March. The Chinese foreign ministry stated that spectators will receive details of the trade talks' results soon.
