Stocks Run with Sino-US Trade Hopes
China added to market-friendly noise by saying it had agreed to cut tariffs on the US autos, wiping out a levy imposed earlier this year in response to the US measures.
A flurry of positive developments in the tariffs stand-off between the US and China provided some early Christmas cheer on trading floors, although the market is still not out of the woods as we saw another volatile session on Wall Street. At least that’s what Sageraj Bariya, Vice President - Institutional Sales, East India Securities, felt.
A Canadian court on Tuesday granted bail to Huawei's executive in a move that could help placate Chinese officials angered by her arrest. China added to market-friendly noise by saying it had agreed to cut tariffs on the US autos, wiping out a levy imposed earlier this year in response to the US measures. Investors welcomed the headlines with Asian markets enjoying healthy buying interest. European markets closed firmly in the positive terrain as economic data in the region was mostly upbeat. But it is not all rosy. Pound tanked 2 percent amid reports Conservative lawmakers could vote on a no-confidence motion in May's leadership as soon as Wednesday night. The market is concerned about whether May can survive as PM and what the prospects are for another general election, new referendum or a hard Brexit. Domestic markets are likely to remain range-bound on Wednesday as they assess and interpret the outcome of assembly polls and appointment of the new RBI governor. Given his close connection with the Narendra Modi government, the market will view this as a patronage appointment and will do little to shore confidence in the RBI as an autonomous central bank, said Bariya.
