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Home / Technology / Stocks are rallying before the trade between the US and China kick off

Stocks are rallying before the trade between the US and China kick off



 trader happy celebrate AP Images / Richard Drew

  • Global stocks are rallying sharply Monday with investors bracing for significant volatility ahead of key trade war talks.
  • It looks set to be a busy week in markets, With fresh trade talks between Washington and Beijing, the possibility of a fresh government shutdown in the US, and likely confirmation that Germany is a recession.
  • Despite that, traders are optimistic at the start of the week, with Chinese equity indexes rallying as much as 3% on their return from a break for the Lunar New Year.
  • You can follow the latest market movements at Markets Insider.

Global stocks are rallying sharply Monday ahead of a busy week for markets in which investors are bracing for significant volatility

With trade talks between Washington and Beijing kicking off Monday, as well as China's markets reopening after a week off, it is set to be a busy week for stocks.

"We could e more volatility this week than China returns from its week-long celebration of the Lunar New Year on top of data, including growth figures from Germany, "Jasper Lawler, head of research at London Capital Group said in email Monday morning, the threat of a fresh US government shutdown further clouds the picture for equities.

"The US government runs out on Friday February 1

5. The collapse of talks over the weekend between US Democrats and Republican lawmakers he raised fears that another US government shutdown could be on us in days, "he wrote.

trade deal of some form before the 90 day deadline imposed on the G20 in Argentina late in 2018.

Talks will initially be conducted between relatively junior officials, before Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer take over on Thursday and Friday.

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Despite the hectic week ahead, investors seem calm Monday, with stocks in China jumping on their first day back after a break to celebrate Lunar New Year. European shares have followed suit, seeing substantial gains in the first hour of the week's trading. US stocks also look to climb when markets open states later in the day.

Here's how things look just after 9.00 a.m. GMT (4.00 am ET):

  • Chinese markets, which returned to trading after a long break for Lunar New Year, bounced Monday, with the Shenzhen Component gaining more than 3% on the day. Elsewhere, the [hang] Composite gained 1.36%, while the China A50 was up 1.25%.
  • Outside mainland China, Hong Kong Hang Seng climbed 0.65 while shares in Taiwan increased 0.7%. Japan's Nikkei is closed in observance of National Foundation Day
  • In Europe, all major share indexes are higher during morning trading, with gains generally close to, or above, 1%. Germany's DAX has climbed 1.1% to start the week, despite upcoming GDP data which will confirm whether or not the country's recession at the end of 2018.
  • Elsewhere in Europe, the FTSE 100 has rallied 0.98% in London, while the Euro Stoxx 50 broad index is 1.15% higher.
  • Futures point to a strong start to trading in the US later Monday, with the Dow Jones and S&P 500 set to open roughly 0.4% higher, and the Nasdaq looking at a 0.6% gain.

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