DJIA 26062.68 +78.74
Nasdaq 7823.17 +81.07
S&P 2886.73 +13.39
Stocks rose on Monday, extending last week’s big gains, after the U.S. reached an agreement with Mexico on tariffs, easing some of the trade concerns which have weighed on the market since early May.
President Donald Trump announced Sunday that proposed tariffs on Mexican imports would be suspended indefinitely. Trump said in a Twitter post that he has “full confidence” that Mexico will crack down on migration from Central America, after the two neighbors reached a consensus.
Trump and Chinese leader Xi Jinping are set to meet at the G-20 Summit later this month after both countries slapped tariffs and made tit-for-tat threats. Trump said Monday if Xi skips the meeting, more China tariffs will go into effect immediately. Trump had threatened to impose duties on another $300 billion in Chinese goods if they can’t strike a deal soon.
The dollar was largely steady against other major currencies on Tuesday, but investor appetite for risk was kept in check after U.S. President Donald Trump renewed his tariff threats toward China.
Financial markets over the last year have been gripped by fears of escalating trade tensions between the world’s two largest economies, stoking worries over the outlook for global growth.
Appetite for risk remained subdued as investors waited for confirmation of a possible meeting between Trump and China’s president at the Group of 20 summit near the end of the month, analysts said.
Trump said on Monday he was ready to impose another round of tariffs on Chinese imports if he does not reach a trade deal with President Xi Jinping at the June 28-29 summit in Osaka.
Since two days of talks to settle the U.S.-China trade dispute last month in Washington ended in a stalemate, the U.S. president has repeatedly said he expected to meet Xi at the G20 gathering. China has not confirmed any such meeting.
The single currency dipped on Monday after two sources familiar with the European Central Bank’s policy discussions said on the weekend that a rate cut was firmly in play if the bloc’s economy stagnates again after expanding by 0.4% in the first quarter.
Gold prices dropped 1% on Monday, slipping from a 14-month peak, after U.S. President Donald Trump’s decision not to impose trade tariffs on Mexico spurred risk sentiment and lifted the dollar from recent lows.
Markets worldwide were quick to cheer the deal, with MSCI’s index of stocks across the world up more than 1%, and Wall Street set to begin the week well.
Oil prices stabilized on expectations that producer group OPECand its allies will keep withholding supply to prevent prices from tumbling amid a broad economic slowdown which has started eating away at fuel demand growth.