Stock markets surge on China-US trade breakthrough hopes

Stock markets across the globe powered higher  yesterday, buoyed by hopes of a breakthrough in the US-China trade war.

European and Asian indices bounced back strongly after the Wall Street Journal (WSJ) reported that the US was considering lifting tariffs on China as officials look to hammer out a trade deal.

At the opening bell in New York the Dow Jones was also up, having already gained on Thursday on the report which helped the market recover from a wobble triggered by news that the US was carrying out a criminal probe into Chinese tech giant Huawei.

“Global markets are enjoying an overwhelmingly bullish end to the week, with hopes of a potential breakthrough in US-China trade talks helping drive optimism throughout both Asia and now Europe,” said Joshua Mahony, senior market analyst at traders IG.

The WSJ reported that US Treasury Secretary Steven Mnuchin had raised the idea with US Trade Representative Robert Lighthizer of removing some or all levies on Beijing in return for structural reforms.

It said the move was part of a bid to reassure markets and bolster the odds of a bigger trade deal, ending a months-long saga that is beginning to impact economies around the world,...