Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S., European shares gain after Trump auto-tariff delay

Published 2019-05-15, 01:52 p/m
Updated 2019-05-15, 02:00 p/m
U.S., European shares gain after Trump auto-tariff delay

U.S., European shares gain after Trump auto-tariff delay

* Wall Street, European shares rebound after initial falls

* Trump set to delay auto tariffs decision by up to 6 months

* Positive trade sentiment counters weak U.S., China data

* U.S. 2-year Treasury yield hits 15-month low after retail data

* Oil rises on Middle East tension, shrugs off U.S. crude build

By Lewis Krauskopf

NEW YORK, May 15 (Reuters) - U.S. and European stock indexes gained on Wednesday after news that U.S. President Donald Trump planned to delay tariffs on auto imports, offsetting earlier pressure on equities and government bond yields from weak U.S. and Chinese economic data.

Trump is expected to delay a decision on tariffs on imported cars and parts by up to six months, three administration officials told Reuters. Fears about an escalating global trade war, particularly following a spike in U.S.-China tensions, have rattled markets over the past week.

“Europe is on the brink of recession, and auto tariffs would almost certainly push it into recession," said Oliver Pursche, chief market strategist at Bruderman Asset Management in New York. "President Trump announcing that he'd delay auto tariffs by as many as six months is positive, and stocks are reacting appropriately to that.”

Meanwhile, U.S. Treasury Secretary Steven Mnuchin said he will likely travel to Beijing soon to continue negotiations with Chinese counterparts as the world's two biggest economies try to salvage talks aimed at ending their months-long trade war. U.S. and European stock indexes moved higher after falling earlier.

On Wall Street, the Dow Jones Industrial Average .DJI rose 122.85 points, or 0.48%, to 25,654.9, the S&P 500 .SPX gained 18.54 points, or 0.65%, to 2,852.95 and the Nasdaq Composite .IXIC added 86.37 points, or 1.12%, to 7,820.86.

The pan-European STOXX 600 index .STOXX rose 0.46%. Europe's auto's and suppliers index .SXAP jumped 2.0%. stocks .FTMIB were still down 0.1% after the country's deputy prime minister said Rome was ready to break EU fiscal rules. gauge of stocks across the globe .MIWD00000PUS gained 0.56%.

The positive trade developments lifted risk sentiment that had been dampened earlier in the session by weak economic data.

China reported surprisingly weaker growth in retail sales and industrial output for April. In the U.S., retail sales unexpectedly fell in April as households cut back on purchases of motor vehicles and a range of other goods, while other data showed a drop in industrial production last month. market gave, up until now, the (Trump) administration the benefit of the doubt in prosecuting the trade war because the economy was strong, and now all of a sudden the data was weaker than expected and I think it is causing a little bit of concern here,” David Joy, chief market strategist at Ameriprise Financial (NYSE:AMP) in Boston, said before news of the auto-tariff delay.

U.S. Treasury yields fell, with the two-year yield hitting its lowest in 15 months as traders raised bets on a Federal Reserve interest rate cut after U.S. retail sales missed expectations. 10-year notes US10YT=RR last rose 12/32 in price to yield 2.3785%, from 2.419% late on Tuesday.

The dollar index .DXY , which measures the greenback against a basket of six major currencies, rose 0.01%, with the euro EUR= up 0.02% to $1.1205. futures rose as worries that rising tensions in the Middle East could hit global supplies overshadowed an unexpected build in U.S. crude inventories. crude CLcv1 rose 0.55% to $62.12 per barrel and Brent LCOcv1 was last at $71.91, up 0.94% on the day. Graphic: World FX rates in 2019

http://tmsnrt.rs/2egbfVh

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.