Stocks climb as US-EU trade tensions ease

AFP | London

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Wall Street shares bounced yesterday, catching up to a European rally after US President Donald Trump delayed huge tariffs on imports from the EU over the long holiday weekend.

New York’s main stock markets all rebounded as trading resumed in New York after the Memorial Day weekend, with the broad-based S&P 500 gaining more than one% and the tech-heavy Nasdaq up 1.4%.

The Frankfurt stock market rose 0.6% while Paris was flat in afternoon deals following Monday’s rally in Europe.

Trump sent markets into a tailspin Friday when he threatened to hit EU goods with a 50% tariff from June 1, saying talks were “going nowhere”.

But after a phone call Sunday with EU chief Ursula von der Leyen, Trump delayed the levies until July 9 to give more time for negotiations.

EU trade commissioner Maros Sefcovic said Monday following calls with top US officials that the bloc remains “fully committed” to reaching a trade agreement with the United States.

“This postponement has helped soothe tensions following last week’s turbulence and is widely viewed as a temporary de-escalation in the ongoing trade dispute,” said David Morrison, senior market analyst at financial services firm Trade Nation. Analysts cautioned, however, that Trump’s trade policies have been erratic.