European shares boosted by Trump’s moderate response to China
European stocks went up on June 1. Investors are entertaining hopes of a rapid recovery and a relatively peaceful resolution of the latest US-Chona conflict.
The Euro STOXX 600 gained 0,6%, closing in on their highest position since before the March crash. Mining, travel and financial sectors led the charge.
Market participants are hoping for a rapid global recovery, as the containment measures are being lifted and vaccine tests are showing successful results. They were also relieved by the recent development of US-China tensions.
President Trump revealed that he is not planning to cut the first phase of the trade deal. The United States will likely terminate the special status of Hong Kong, which is still bad, yet not as detrimental as the new trade war.
There are still some negative news to balance out the positive ones. German manufacturing is still contracting, according to the latest activity survey. Traders are also waiting for the results of the ECB’s meeting on June 4.