Stocks and oil jump after the US and China reach trade truce
The leaders of the world's two largest economies, Donald Trump and Xi Jinping, agreed to a temporary truce on trade at a highly anticipated dinner in Argentina. CNN's Steven Jiang has the details.
A ceasefire is better than an escalating trade war as far as investors are concerned.
Stocks jumped higher around the world on Monday after the United States and China said they would hold fire on further tariffs for the time being and try to settle their differences through talks.
Major indexes in Hong Kong and Shanghai leaped more than 2.5% on Monday. Stocks were up 2% or more in London, Frankfurt and Paris in morning trading. Meanwhile, Dow futures spiked about 500 points, or 2%.
"The good news is that this truce should be seen as Washington recognizing the potential damage on the US economy if tariffs escalate further," said Tai Hui, chief market strategist for Asia Pacific at JPMorgan Asset Management.