European markets are soaring Tuesday as investors were reassured about the state of the current U.S.-China trade pact after mixed signals from the White House.
London’s FTSE index is up 1.2% in midday trading, the CAC-40 in Paris has risen 1.6%, and Frankfurt’s DAX index is up 2.7%.
Tuesday’s trading day began shakily in Asia in reaction to remarks by White House trade adviser Peter Navarro suggesting the recent trade deal between the United States and China would end. But the region rebounded after Navarro later said his comments were taken out of context, followed by a tweet from President Donald Trump that the deal was “fully intact.”
A man wearing a face mask walks past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange June 23, 2020.
The Nikkei index in Tokyo finished the day’s trading 0.5% higher, while the Hang Seng in Hong Kong closed up 1.6% and Shanghai’s Composite index ended 0.1% higher.
Elsewhere in Asia, Sydney’s S&P/ASX index gained 0.1%; the Sensex in Mumbai rose 1.4%; Seoul’s KOSPI index finished 0.2% higher; and Taiwan’s TSEC index ended 0.3% higher.
Oil prices are also rising in futures trading, with U.S. crude selling at $41.50 per barrel, up 1.8%, and Brent crude trading at $43.84 per barrel, up 1.7%.
Meanwhile, the Dow Jones, S&P 500 and NASDAQ were all trending positively just ahead of Wall Street’s opening bell.