DAX Stock News Today – DAX Stock News Today – World shares rebound after Xi and Biden discuss troubled ties | Fintech Zoom

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DAX Stock News Today – DAX Stock News Today – World shares rebound after Xi and Biden discuss troubled ties | Fintech Zoom

DAX Stock News Today – World shares rebound after Xi and Biden discuss troubled ties

AP – World shares advanced yesterday after United States (US) President Joe Biden spoke by phone with China’s Xi Jinping.

Benchmarks rose in Paris, London, Tokyo, Shanghai and Hong Kong. The yield on the 10-year Treasury note was steady at 1.31 per cent and US futures were higher. Crude oil prices rose.

Biden initiated the 90-minute call with Xi, which centred on discussing the way ahead for the US-China relationship. The White House said the leaders during the call agreed to engage “openly and straightforwardly” on issues where the nations are at odds and where there is agreement.

“President Biden and Xi’s phone call has spurred hopes of a thaw in US-China relations. That is ostensibly good for trade everywhere and spurred a decent rally in stocks across Asia,” Jeffrey Halley of Oanda said in a commentary.

Investors appeared to take in stride a decision by the European Central Bank (ECB) on Thursday to dial back some of its massive emergency pandemic support for the economy as the 19 countries that use the euro rebound from the coronavirus recession.

A currency trader walks by the screen showing the Korea Composite Stock price Index at the foreign exchange dealing room in Seoul, South Korea. PHOTO: AP

Analysts said investors were reassured by ECB head Christine Lagarde’s insistence that the shift was only a “recalibration” of existing stimulus — not a signal that pandemic support is being phased out.

Germany’s DAX gained 0.1 per cent to 15,643.96 and the CAC 40 in Paris rose 0.4 per cent to 6,7089.48. Britain’s FTSE 100 picked up 0.3 per cent to 7,047.34. The future contract for the Dow industrials was trading 0.5 per cent higher, while the future for the S&P 500 climbed 0.4 per cent.

In Asian trading, Tokyo’s Nikkei 225 gained 1.3 per cent to 30,381.84 while the Hang Seng in Hong Kong jumped 1.9 per cent to 26,205.91. South Korea’s Kospi added 0.4 per cent to 3,125.76. The Shanghai Composite index climbed 0.5 per cent to 3,703.11.

Investors have been assessing the pace of economic growth amid worries that the rapid spread of the coronavirus Delta variant will dampen consumer confidence and spending.

In New York, the S&P 500 fell 0.5 per cent, its fourth straight drop, to 4,493.28. The Nasdaq pulled back 0.3 per cent, to 15,248.25.

The Dow Jones Industrial Average fell 0.4 per cent to 34,879.38.

Small company stocks fared better than the broader market. The Russell 2000 index gave up 0.60 points, or less than 0.1 per cent, to 2,249.13.

Fed officials indicated they expect to dial back on stimulus measures by year’s end, and Treasury Secretary Janet Yellen has warned Congress that she will run out of manoeuvering room to prevent the US from breaching the government’s borrowing limit in October unless the debt ceiling is raised.

In other trading, US benchmark crude oil rose 73 cents to USD68.87 per barrel in electronic trading on the New York Mercantile Exchange. It gave up USD1.16 to USD68.14 per barrel on Thursday.

Brent crude rose 89 cents to USD72.34 per barrel.

The US dollar rose to JPY109.96 from JPY109.73. The euro was trading at USD1.1842, up from USD1.1825 on Thursday.

DAX Stock News Today – World shares rebound after Xi and Biden discuss troubled ties

DAX Stock News Today – DAX Stock News Today – World shares rebound after Xi and Biden discuss troubled ties | Fintech Zoom