At the global stock exchanges, shares last week increased strongly because investors encouraged the release of trade tensions between the United States and China.
On the Wall Street, Dow Jones last week, at 42,654 points, while the S & P 500 jumped 5.3 percent, to 5,958 points, and the NASDAQ index is 7.2 percent, at 19,211 points.
These indices increased the most on Monday because the USA and China achieved an agreement on the Provisional Reduction of Reciprocal Customs at the Provisional Reduction of Hina last weekend.
According to the Agreement, the United States has reduced the customs duties from China from 145 to 30 percent, and China on imports from the USA with 125 per 10 percent. These measures will be in force for 90 days, and in the meantime, trade negotiations between the United States and China will continue.
Thanks to that, fears of the recession are mitigated, and investors hope that the final trade agreement between the two largest world economies will be achieved soon.
“This is a relief because there was a lot of concerns between the Customs between the US and China. The customs will be reduced to much more reasonable levels, and the negative impact on the economy should be smaller,” says John praven, director at the company Paleo Leon.
After last week’s growth, the S & P 500 is away from its record level, achieved in February, only about 3 percent. This means that he has made up all the losses from the beginning of April, when the US President Donald Trump shook markets by introducing reciprocal customs.
It is mostly thanks to the hope of the investor that current customs will be reduced, and that Washington will achieve favorable agreements with their largest trade partners.
“Investors expect arrangements and therefore stock prices have made up losses. This phase in the market would call BiH ‘in the expectation of an agreement’”, says Dennis Dick, Triple D Trading.
And in the European stock exchanges, the stock prices have risen last week. The London FTSE index strengthened 1.5 percent, to 8,684 points, while Frankfurt Dax increased by 1.1 percent, to 23,767 points, and the Paris CAC 1.8 percent, to 7,886 points.
