The Asian stock markets have shot up in the early hours of Thursday as there are signs of the Sino-American trade war soon coming to an end. Also, the European Central Bank is expected to set a monetary easing trend which would be followed by Central Banks around the globe.
The Indian stocks markets are expected to remain stable on the back of the reasons mentioned above. MSCI’s broadest index shot up by 0.2%, and Nikkei soared by 1% while the Australian shares were pumped up by 0.41%. The Japanese Yen and gold, which are considered safe havens, fell on the back of the latest development.
The US President Donald Trump held back imposing additional tariffs on Chinese products ‘as a gesture of goodwill’. The delay in the US imposing new tariffs on Chinese goods has come one day after China’s announcement of exempting 16 types of American products from the import tariffs.
Any improvements in the bruised trade relationship between the US and China would reflect positively on the equity markets around the globe and would help them continue their rally this month. The ECB meeting, which is scheduled later in the day, is eagerly awaited, as the ECB is expected to come up with steps to boost the economy.
The US stock futures shot up by 0.57% in Asia following S&P500 closing 0.72% higher in New York yesterday. The US dollar touched its six weeks high of 108.04 against the Japanese Yen. It was mostly trading at 107.36 yen a dollar yesterday. Spot gold gripped a bearish trend as it fell by 0.23% to trade at USD 1492.80 an ounce.
The prices of oil went up in Asia. It finally rebounded yesterday as there are expectations of the Organization of the Petroleum Exporting Countries (OPEC) members cutting the output to back the prices. The US crude gained 0.77% to touch USD 56.18 in Asia in the early hours of Thursday.
On Wednesday, the futures collapsed over 2% on the back of a report stating the US is considering easing sanctions on troubled Iran, and this move will increase the oil supply. Also, the OPEC has said that its the responsibility of all producers to support the oil market.