European stocks climb as China, US signal progress on trade deal

25 of August, 2020
Filed under: Latest News

Stocks climbed in Europe and Asia alongside US equity futures as America and China signalled progress on their phase-one trade deal. Treasuries edged lower with the dollar.

S&P 500 futures advanced and shares rose throughout most of Asia as the two countries reaffirmed their commitment to a deal despite disagreement over issues such as tech security and Hong Kong. European stocks tracked the move upwards, with all 19 industry groups in the green.

Oil was steady as traders eyed Tropical Storm Laura, which is expected to strengthen into a hurricane before making landfall later this week. US gasoline futures rose to the highest since before the pandemic on concern over possible fuel shortages.

In addition to geopolitics, investors are focused on vaccine progress as global economies reopen amid fresh oubreaks of the virus. Moderna Inc. said it’s near a deal to supply at least 80 million vaccine doses to the European Union.

“A steady flow of progress with Covid-19 treatments/vaccines is delivering the latest boost to risk appetite,” Edward Moya, senior market analyst at OANDA, said in a note. He cautioned that “market breadth however does not support the surge to record high territory for US indexes.”

Article Source: click here.