The acquisition of shares on signs of reducing the tension of Sino-As trading
Global shares surged on Friday as a sign of possible trade talks between the US and China to lift risk sentiment after the less enthusiastic income from Tech Bellwethers Apple and Amazon sparked concerns about the impact of the global trade war.
The Chinese Ministry of Trade said on Friday the United States had repeatedly stated its willingness to negotiate on the tariffs and the Beijing door was open to talks, in a step that could ease the tension of trade that had shaken the global market.
The comment helped us provide a reverse path of the futures from the previous fall after Apple trimmed its shares repurchase program and warned the tariff could add around $ 900 million in this quarter fee.
Futures for S&P 500 rose 0.8% while those for Nasdaq were 0.6% higher.
European stock markets are set to open strong with Eurostoxx 50 futures rose 1.3%.
The area of the MSCI area of Asia-Pacific shares outside Japan (.MiaPJ0000pus) has risen to the highest level since March 25, renamed all of its losses since US President Donald Trump began a trade war at the beginning of April.
Nikkei Japan gained more than 1% and Taiwan TWSE shares: Taix jumped 2.4%. Hang Seng Hong Kong jumped 1.6%, while the mainland China Market was closed for a long vacation.
“They (China) have reached a careful tone, demanding that the US ‘show sincerity’ if they want trade talks,” said Matt Simpson, a senior market analyst at the City Index.
“So, while Olive Branch has been offered, you can hardly say China ‘came to crawl’ as Trump expected.”
However, investor sentiments emerged in comments when the market continued to wrestle with the uncertain tariff policy of President Donald Trump who had triggered concerns of a sharp global economic decline.
This week’s data shows the US economy shrinks for the first time in three years in the first quarter, while the Chinese factory activities are contracted at the fastest speed in 16 months in April when the new tariff starts to bite.
Joseph Capurso, the head of the international and sustainable economy at the Commonwealth Bank of Australia, said the main impact on the economy of the tariff would be felt when consumer prices rose.
“Recession will be a possibility if the price increase encourages consumers to cut expenses and businesses to shrink labor and cut capital expenses. Although the recession is not our baseline, it will be a close call this year.”
The revenue season has so far underlined the cost of US trading policies that shifted quickly with many companies that cut or attract their profit estimates.
However, while investors are discouraged by the income from Apple and Amazon, strong results from the Microsoft and Meta platforms earlier this week have increased the expectation that the technology industry can overcome the tariff storm.
In the currency market, Japanese Yen has weakened to its lowest level since April 10 in the early Asia but finally a little stronger at 145.26 per US dollar.
Bank of Japan on Thursday reduced the estimated growth due to US tariffs and leaving the retained interest rate, showing the central bank can maintain the policy in the holding pattern for some time.
Fred Neumann, Head of Asian Economist at HSBC, said the impact of the uncertainty of tariffs on the global economy could lead to indirect challenges on growth in Japan.
“BOJ keeps the door opening for further tariff increases, but at this point the door is only a little teaching.”
It left the US dollar on the path for an increase of 0.4% for the week before the important non-agricultural payroll data later on. The dollar index, which measures the US currency against the other six units, lasted slightly lower at 100.02.
Non -agricultural payrolls may increase 130,000 last month’s jobs after an increase of 228,000 in March, a survey of Reuters of Economists showed.
Japanese Finance Minister Katsunobu Kato said that on Friday, a very large $ 1 trillion-plus in the country ownership of Treasury US is one of the tools available for Tokyo in trade negotiations with the United States.
The statement emerged when the Japanese Top Trading Negotiator Ryosei Akazawa met with the Minister of Finance US Scott Besent in Washington for the second round of bilateral tariff talks.
In commodities, the price of gold rose to $ 3,252.11 per ounce on Friday, but was on the lane for the weakest weekly performance since the end of February.
Oil prices surged after Trump threatened secondary sanctions against Iran and instructions to relieve trade tension, which if realized would support demand. Brent Crude Oil Futures
up 0.66% while US West Texas Intermediate Maham Futures rose 0.7%.
Source: Reuters
