Global Stocks Gain on U.S. Moves on Budget, Trade
Global stocks climbed Tuesday, as the U.S. moved to rekindle stalled trade talks with China and after Congress struck a deal with the White House over spending and the federal debt ceiling.
President Trump met with major technology companies at the White House on Monday to discuss restrictions on Chinese telecom giant Huawei, a move regarded as a step toward softening the U.S. stance on the blacklisted firm.
In Europe, shares of semiconductor firm AMS AG and Logitech International posted some of the biggest gains, with increases of 9.1% and 6.2%, respectively, after both firms reported quarterly earnings.
In the U.K., markets were awaiting the announcement shortly before noon of the victor in the Conservative competition to be the new prime minister. The expectation is for Boris Johnson, the former foreign secretary and a leading voice of the campaign to leave the EU, to take the helm.
Derek Halpenny of MUFG Bank Ltd. said that unless there were signs that support was ebbing away from Mr. Johnson, in the form of further cabinet resignations or parliamentary party defections, there would “not be much in terms of volatility in equities, currencies or bonds.”
Wall Street was set for another crop of results from major corporations. Coca-Cola Company will report on earnings later Tuesday, along with Travelers Companies and Visa.
Asian markets were also up, with Shanghai up 0.5%, Hong Kong’s Hang Seng up 0.4% and Japan’s Nikkei up 1%.
Source: Dow Jones