U.S – China trade war: World stocks increase by 0.2 percent

World stocks rose to 0.2 percent, their highest level in a week while Asian stocks climbed nearly half a percent led by a rebound in Chinese shares.

The imposition of tariffs by the United States and China on billions of dollars of trade was absorbed calmly by markets on Friday with the euro also climbing a three-week peak.

Chinese shares led a recovery by Asian market, partly helped by the perception that the tariff measures were already priced in though worries about what lay ahead for global markets boosted appetite for perceived safe-haven assets such as government debt and the Japanese yen.

According to a senior Currency Strategist at BNY Mellon in London, Neil Mellor:

Some of it is priced in but then this is an ongoing story and what can definitively be said that we are entering a period of much greater uncertainty than before, he said

On his part the co-Head of Asia Economic Research in Hong Kong, Frederic Neumann said:

The China-U.S. relationship is such a large component of global trade that we really have a global impact and that has implications that are difficult to foresee, he explained.

Source: Voice of Nigeria