Stock markets globally soared on Monday as the easing of tensions in the US-China trade dispute boosted investor confidence.
Investors, previously anxious, embraced the initial phase of the new trade agreement, leading Wall Street to its fourth consecutive day of gains as markets closed on Monday. The optimism surrounding “phase one” of the US-China trade deal coincides with an upcoming congressional vote on a new trade agreement in North America. The US, Canada, and Mexico are set to vote on a new trade pact on Thursday.
On the positive trade news, the S&P 500 rose by 0.7% on Monday, driven by gains in healthcare and energy stocks. Simultaneously, the Dow Jones climbed by 0.4%, while the Nasdaq experienced the most significant increase at 0.9%. The Nasdaq, heavily weighted towards the tech industry, likely saw substantial gains due to this sector’s performance.
While the US markets fared well, the European markets witnessed even greater increases. The European Stoxx 600 surged by 1.4%, with London’s FTSE 100 rising by approximately 2.25%. The FTSE 100 experienced the highest percentage gains, adding £41 billion to its benchmark index. Impressively, the MSCI All-World index also saw a 0.6% rise.
