FTSE's €42bn surge as trade war fears ease

By James Sillars, Business Reporter
Stock markets are recovering some value as hopes grow that the two largest economies in the world will avert a damaging trade war.
Over the past few weeks the US - followed by China - has fired their first salvoes in a dispute that has rattled investors globally and helped whisk values from record highs.The focus has been largely concentrated on the two countries since President Donald Trump moved to impose tariffs on US imports of steel and aluminium products - exempting the EU and many other nations, at least for now.Mr Trump's protectionist agenda is aimed at saving US jobs and closing what he sees as a $504bn trade gap with China and deficits with other major economies.
FTSE's €42bn surge as trade war fears ease

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His proposed measures also include tackling alleged intellectual property theft by Beijing - though fears of reprisals have hit already-pressured tech stocks.China has responded by threatening to target US agriculture as part of its own measures and has raised objections with the World Trade Organisation to the planned imposition of $50bn in tariffs over the technology issue.But market analysts said a softening of the diplomatic language had helped take the pressure off risk-prone stocks late on Wednesday in the US, and on Thursday more widely.The FTSE 100 - which hit levels not seen since 2016 last month and is 7% down in the year to date - closed 2.4% higher at 7199 in a shift upwards aided by a stronger dollar.
FTSE's €42bn surge as trade war fears ease

Stock market values worldwide have been knocked by weeks of trade war talk
It meant just over €42bn of previously lost value was recovered during the session, with the index's biggest tech stock Micro Focus topping the gainers.There were similar wins across Europe while US markets built on the late gains of the previous day with tech shares, such as Facebook, and financial and retail stocks up strongly.Traders cited a response to Mr Trump's top economic adviser, Larry Kudlow, saying the White House was involved in a "negotiation" with China rather than a trade war.
The Fake News Washington Post, Amazon’s “chief lobbyist,” has another (of many) phony headlines, “Trump Defiant As China Adds Trade Penalties.” WRONG! Should read, “Trump Defiant as U.S. Adds Trade Penalties, Will End Barriers And Massive I.P. Theft.” Typically bad reporting!— Donald J. Trump (@realDonaldTrump) April 5, 2018
Mr Trump, however, continued to maintain the pressure on Beijing via his Twitter account.
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In response to reporting of China's planned retaliation, he wrote: "The Fake News Washington Post, Amazon's "chief lobbyist," has another (of many) phony headlines, 'Trump Defiant As China Adds Trade Penalties'."WRONG! Should read, "Trump Defiant as U.S. Adds Trade Penalties, Will End Barriers And Massive I.P. Theft.' Typically bad reporting!"
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