U.S. stocks jumped higher with the Dow starting with a triple-digit rally to start the week as investors are optimistic about monetary stimulus measures.
China’s central bank unveiled interest rate reforms expected to lower corporate borrowing costs.
|I:DJI||DOW JONES AVERAGES||26166.74||+280.73||+1.08%|
|I:COMP||NASDAQ COMPOSITE INDEX||8009.317319||+113.32||+1.44%|
Investors continue to rejigger their read on President Donald Trump’s trade war and growing worries about slowing economies around the world.
U.S. Commerce Secretary Wilbur Ross said Monday morning on FOX Business that the U.S. government will extend a reprieve given to Huawei Technologies that permits the Chinese firm to buy supplies from U.S. companies so that it can service existing customers. An additonal 50 of its units were being added to a U.S. economic blacklist.
France’s CAC 40 gained 1.6 percent, while Germany’s DAX rose 1.5 percent. Britain’s FTSE 100 was up 1.2 percent.
Japan’s benchmark Nikkei 225 rose 0.7 percent, Hong Kong’s Hang Seng rose 2.1 percent and the Shanghai Composite added 2.1 percent.
This comes after the U.S. markets finished last week strong with a Dow gain of 1.2 percent. Each index still finished with a third straight weekly decline.
Wall Street stocks and other investments had a rollercoaster week, diving into a crater on Wednesday last week when a fairly reliable warning signal of recession flipped on in the U.S. Treasury market.
U.S. crude oil traded higher by 1.5 percent at $55.61
Retailers will continue to report quarterly earnings this week with a focus on the home improvement retailers such as Home Depot and Lowe’s. Target and Gap will also report during the week.
|HD||THE HOME DEPOT INC.||207.51||+3.86||+1.90%|
|LOW||LOWE’S COMPANIES INC.||95.75||+1.83||+1.95%|
Investors are hoping that the Federal Reserve will continue to cut interest rates to shore up economic growth.
The central bank lowered interest rates by a quarter-point at its last meeting. It was the first time it lowered rates in a decade.
Shares of Apple moved higher after President Trump and Apple Chief Executive Tim Cook spoke about the impact of U.S. tariffs.
Estee Lauder shares rose as the company forecast full-year revenue and profit above estimates
Investors are also worried about Trump’s shocking announcement on Aug. 1 that he planned to extend tariffs across virtually all Chinese imports, many of them consumer products that were exempt from early rounds of tariffs. The tariffs have been delayed, but ultimately will raise costs for U.S. companies bringing goods in from China.
The Associated Press contributed to this article.