Open menu Close menu Menu
Open charts menu Close charts menu Charts

For help and advice call us on:

0121 369 3000

8am to 10pm - 7 days a week

£ $
Live Metal Prices
Metal Ounce Gram
Gold £1,428.44 £45.93
Silver £14.642 £0.471
Platinum £666.83 £21.44
Palladium £1,564.00 £50.28

Updated 01:08 07/07/20

European markets up as China removes trade tariffs on $75bn of goods

Liam Sheasby

By Liam Sheasby, News Editor

06 Feb 2020

China has announced it will be cutting tariffs on $75 billion worth of goods by half, in a major boost to global stock markets amidst the ongoing coronavirus outbreak.

Last year China retaliated to US tariffs on its goods by levying import fees on 1,717 different American goods, worth $75 billion. Following talks between the two nations however, China agreed that it would halve the 5%-10% tariffs in place this year, as part of a push to reach an agreement and end the trade war.

The CSI 300 index in China rose by 1.86%, while the Hang Seng rose by 2.4%. In Europe, the STOXX 600 hit a new record high of 424.80 points, courtesy of strengthening stocks in the UK (FTSE 100 +0.6%, FTSE 250 +0.7%), France (CAC 40 +0.8%) and Germany (DAX 30 +0.7%). European markets have since slowed down again but could be buoyed this afternoon when the US markets open.

Last night, the Nasdaq set a new all-time record as Wall Street recorded its third day of gains. The tech-focused market set a new intraday high of 9,574.94 points and ended the session at a record high of 9,508.68 points. The S&P 500 also closed at a record high of 3,334.69 points. These gains put the Nasdaq and S&P 500 up 3.9% and 3.4% respectively, with the Dow Jones performing similarly well, up 3.7% for the week.

The rebound from coronavirus-related fears has driven the major three US markets upwards, with many investors believing China’s claims that it had a treatment available to curtail the coronavirus. Some analysts believe that China’s move to cut tariffs today is related to the investor fears about the coronavirus, with the US markets seemingly unaffected and China’s markets struggling as the country operates at a reduced capacity.

With a resurgence in stock market investment, gold fell to $1,547.55 per ounce at its lowest this week - $45 down from its peak price of $1,592.03. The precious metal has since risen back up to $1,566.40 per ounce today.

Despite the perceived risks, Courtney Doming of Payne Capital Management told the Reuters news agency that she believes investors are holding back on the stock markets at present and should commit firmly, even though the Nasdaq enjoyed an all-time record high closing value yesterday.

comments powered by Disqus