LONDON (Reuters) – Worldwide shares rallied on Friday, hitting weekly highs, on indications of improving Sino-American relations and the prospect of more governments gradually reopening their economies.
FILE PICTURE: A general view reveals the German share prize index DAX board throughout afternoon trading as markets react on the coronavirus disease (COVID-19) at the stock market in Frankfurt, Germany, March 16,2020 REUTERS/Kai Pfaffenbach
The optimism contrasts with the financial data. U.S. unemployment numbers due later on Friday are expected to be the worst in a life time as the coronavirus pandemic ravages economies.
Leading U.S. and Chinese trade agents discussed their Phase 1 trade offer on Friday, with China stating they agreed to enhance the environment for its execution and the United States stating both sides anticipated commitments to be fulfilled.
That relaxed investors’ fears about renewed trade stress after U.S. President Donald Trump and other leading authorities blamed China for the spread of the brand-new coronavirus and threatened punitive action, including possible tariffs and moving supply chains far from China.
” The hazard of a breakdown in negotiations in the meantime a minimum of has been prevented,” said Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets.
” Though naturally the president continues to continue with a few of his remarks relating to the COVID outbreak, however a minimum of from the trade side it looks a