– World shares touched a 21-month high on Monday on signs that the United States and China could soon put an end to a damaging trade war as well as indications that the world may yet dodge an economic recession.
European stocks followed Asian indexes upwards, with the broad Euro STOXX 600 gaining 0.9%. Frankfurt’s main index .GDAXI, seen as highly exposed to the trade war, climbing 1.2% to reach its highest since June last year.The optimistic tone reached currency markets, too, with the Chinese yuan CNH=EBS rising to a 12-week high versus the dollar.
“It will be a convenient decision for President Trump to let phase one be signed,” said Alessia Berardi, senior economist at Amundi. “This is a kind of low-hanging fruit to collect and is very much possible.” On Friday, a better-than-expected U.S. jobs report added to signs of economic resilience. Job growth slowed less than expected in October, with hiring in the two months before that better than previously estimated.