China’s Order Sets an Overall Buoyant Mood in Asian Markets

China’s Order Sets an Overall Buoyant Mood in Asian Markets

Business Headlines

Trade talks between China and America have struck the right chord in the Asian markets.

Thursday was a good day for the Asian markets. There were multiple factors that helped in lifting the global market. Investors were able to heave a sigh of relief.

The talks between China and the U.S. have quietened trade war tensions. As a first step, China has brought down tariffs on American automakers from 40 percent to 15 percent. It has placed its order for US soybeans. This is a major step taken by China in more than six months in favor of America.

Fears of ousting Theresa May in the UK has failed and has put an end to such political tensions for the time being, though Brexit is still a looming problem. The pound which was trading at 20-month lows bounced upwards on the news of a win for PM Theresa May.

The European Central Bank may end its bond-buying spree though it still casts a shadow on the growth of the economy. Mario Draghi, the European Bank President has said that interest rates may be kept on hold. Though the GDP in the eurozone is at 1.7 percent, the bond-buying program is expected to come to an end. The ECB president will be making his announcements on the monetary policy in the euro area.

Shanghai Composite saw an increase of 1.2 percent. Nikkei of Japan closed above 1 percent on Thursday.

The European markets were marginally on the increase. The Euro Stoxx 50 was up by 0.1 percent while FTSE 100 was unchanged. CAC 40 and DAX were also unchanged.

The U.S futures were trading flat while the Nasdaq was seen in the green territory by moving up by 0.3 percent.

Brent crude was trading slightly lower by 0.3 percent. The pound was trading at $1.2665 and the euro was up by 0.1 percent versus the dollar.