The rally in has been mirrored in global markets. In Europe, Germany’s DAX rose by 0.8%, while France’s CAC 40 increased by 0.4%. The FTSE 100 in the U.K. saw a modest gain of 0.1%. Nikkei 225 in Japan rose 1.3 percent in Asia, boosted by relief on trade tensions and positive economic sentiment.
Markets in China also received a boost, with Hang Seng rising by 2.6% and the Shanghai Composite rising by 0.5%. The US-China trade truce is mainly described as the reason behind this worldwide rally, as it eased some of the worries of tariffs and trade barriers. The tariff pause has given confidence to corporations and markets particularly Asian markets that depend massively on trade.
As markets await Thursday’s Producer Price Index (PPI) report, which will provide more insight into inflation trends, investor focus will shift to upcoming meetings. The Jackson Hole symposium may give further insight into the Federal Reserve’s monetary policy later in August. Although market sentiment is positive, investors are still conservative, especially in relation to the risks that may arise in the labor market and overall economic growth.
