Stock markets across the globe rose for the fourth straight day partly due to China’s announcement to cut tariffs on some US goods. China is to cut tariffs by as much as 50% on $75B of US goods effective February 14th as part of an interim trade deal.
This adds to the optimism that global economies will shrug off coronavirus damage as total death toll hit 563 as of Feb. 5th with 28018 reported cases. China’s commitment to reopen markets and inject stimulus may have increased investors’ appetite.
Moreover, reports of possible vaccines for the virus on Wednesday boosted investor optimism, especially in Asian markets. The SHANGHAI COMPOSITE was up 1.97% in early Thursday trading with the NIKKEI225 appreciating by 2.27%.
Brent oil was up 4.20% even as OPEC failed to reach a consensus after a three-day panel meeting to steer the way forward amid demand scares. The technical panel recommended provisional cut of 600,000 barrels per day, a move Russia is reportedly opposed to preferring an extension of the current deal.
Elsewhere, the US Senate voted to acquit US President Trump in the impeachment trial as expected with a 52-48 vote against the Abuse of Powers charge and 53-47 against the Obstruction of Congress charge.
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