However, naïve or premature, investors’ hopes of a trade deal between the US and China being reached before March 1st (or, indeed, a bit after if Trump’s recent comments are anything to go by) kept the markets enveloped in green.
Jumping 160 points, the Dow Jones managed to near 25600 for the first time since early December, cementing the recovery of the losses it incurred in the middle of last week. Though Trump’s softening stances on matters both domestic (the government shutdown-averting deal) and international (his willingness to potentially extend the deadline for a trade agreement) were the main reasons for the rise, that the US inflation reading missed expectations at 0.0% also helped, further ensuring a dovish Fed.
Having pulled back around lunchtime following news of the region’s latest economic troubles, the Eurozone indices perked up again after the US open. The DAX and CAC both rose 0.4%, allowing the former to near 11200 while the latter eyed 5100.
The FTSE ended up being the day’s winner, a 0.8% increase causing it to approach 7200 for the first time in 4 months. Alongside the macro-stuff that informed gains elsewhere, the UK index benefited from the substantial growth posted by Smurfit Kappa – which in turn led cardboard-peer DS Smith higher – and a strong showing from its miners.
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