Sun, 12 Jul 2020

NEW YORK, New York - A surprise partial trade deal struck between China and the United States ignited Wall Street on Friday with strong gains being seen across the board.

U.S. President Donald Trump, after a meeting with Chinese Vice Premier Liu He, told reporters the two countries had reached a substantial phase-1 trade deal, with a focus on intellectual property, financial services and agricultural purchases.

The breakthrough in the 15-months long trade war relieved pressures that had heavily weighed on markets globally.

At the close of trading Friday, the Dow Jones Industrial Average was ahead 319.92 points, or 1.21%, at 26,816.59.

The Standard and Poor's 500 rose 32.14 points, or 1.09%, to 2,970.27.

The Nasdaq Composite jumped 106.27 points, or 1.34%, to 8,057.04.

On foreign exchange markets the British pound took center stage. After a low on Thursday of 1.2220, sterling soared to a high of 1.2707 on Friday, following news of a potential deal being struck on Brexit. Intense negotiations over the next few days will see how that pans out. Sterling finished the day on Friday near its highs at 1.2648.

The U.S. dollar roared against the Japanese yen, rising to 108.37. It fell however against the euro, which rose to 1.1037 on hopes of a deal with the UK. The Swiss franc was little changed at 0.9967. The Canadian dollar was firmer at 1.3200.

The Australian and New Zealand dollars strengthened to 0.6789 and 0.6335 respectively.

In overseas equity markets the German Dax was a star performer, soaring 2.86%. London's FTSE 100 advanced 0.84% while in Paris, the CAC 40 was up 1.73%.

On Asian markets, the Nikkei 225 in Japan closed Friday 246.89 points or 1.15% higher at 21,798.87.

In Hong Kong, the Hang Seng was sharply higher, rising 582.88 points or 2.27%, to 26,290.81.

China's Shanghai Composite climbed 25.95 points or 0.88% to 2,973.66.

The Australian All Ordinaries appreciated by 59.00 points or 0.89% to 6,721.90.

(File photo. Credit: VOA News).

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