European shares were trading higher on Monday with miners and technology companies leading the gain of Stoxx Europe 600 Index.
Further, shares of automakers also climbed after US president Donald Trump tweeted that China has agreed to “reduce and remove” tariffs on imported American made cars. Additionally, the US is also mulling to curb existing tariffs on inward shipment of Chinese goods worth $200bn at 10% and refrain from hiking that rate to 25% as decided earlier.
On the currency front, the US dollar slipped after the US and China declared a truce in their trade war. Elsewhere, the pound ticked higher even as the threat of a vote to bring down British Prime Minister Theresa May’s government looms should Parliament reject her Brexit deal. That raises the stakes even further as lawmakers begin debating her plan this week. China’s Yuan climbed with emerging market currencies.
Meanwhile, oil surged on optimism that producers will address a glut in the global supply. Oil was jolted higher by efforts across the globe to support prices as Saudi Arabia and Russia extended their pact to manage the market and Canada’s largest producing province ordered unprecedented supply cuts, though prices retreated slightly after Qatar said it was leaving OPEC.
Futures on the Dow, Nasdaq and S&P all pointed to a firmer open, and Asian shares advanced following agreement by the leaders of the two countries to hold off on new tariffs and intensify trade talks.
Besides, ten-year Treasury yields rose back above 3%. The euro strengthened on news in Italian media that the government may accept a lower deficit target.
-With inputs from Bloomberg