The potential aversion of a second government shutdown in the US, alongside some tentative optimism regarding the US-China trade talks in Beijing, ensured another strong start for Europe.
Granting Donald Trump a sliver of the wall he has long been demanding – he said they’d be building it anyway – top Republicans and Democrats reached a deal on Monday night, one that now just needs to be signed off by the President. Admittedly, something that might not be as easy as it sounds.
On top of this tentative resolution to America’s domestic strife, the markets were also lifted by hopes that a tariff hike-averting US-China trade deal can be reached in time. Ahead of Thursday’s get-together between Steve Mnuchin, Robert Lighthizer and Liu He in Beijing, Kellyanne Conway has claimed that Trump wants to meet President Xi ‘very soon’, something that is a slight evolution of last week’s claim that the Donald wouldn’t be seeing his Chinese counterpart this side of the ceasefire ending.
The DAX shot up another 1% as trading got underway, propelling it back above 11100; the CAC was also has cheery, rising 0.6% to tease 5050. The FTSE, however, was a tad more reticent, though its 0.3% rise does leave it at 7150 and very close to last week’s 4-ish month peak.
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