Global Markets calm after Xi’s pacifistic speech

Global equity markets were relatively high on Tuesday after a more conciliatory speech from China who has been planting itself as the champion of global trade and markets. US xi Jinping while delivering a keynote speech at Boao spoke of avoiding a trade war with US as much as possible.

Following an uplift in the Asian markets, US equities also followed through to pick up during the day, Dow finished up by nearly 2 percent.

President Xi also vowed on the anniversary of his predecessor Deng Xiaoping to open up the Chinese economy even more and allowing foreign companies to take ownership in the local economy. However, he did not mention the recent spat between the two countries but talked upon key irritable factors marring the relationship between two countries.

US President hailed President Xi’s kind words but US authorities also warned that these claims must be followed by action as some follow-up on these promises would be needed. Analyst believe that the statements had nothing new in them, just a rehashing of previous statements of Mr. Xi Jinping.

Equity markets in London, Paris and Frankfurt all rose around one percent.

US indices were led by the NASDAQ, which shot up 2.1 percent, in part due to a 4.5 percent gain in Facebook, as the company faced scrutiny in a Capitol Hill hearing.

 President Xi cautioned against a cold war mentality and stated the China should push for free trade and uphold a multilateral trading system in his speech yesterday.  

He noted that most of the tariffs have yet to be finalized "and the comments from Xi seem to suggest that he is keen to avoid any further escalation."

New York - Dow: UP 1.8 percent at 24,408.00 (close)

New York - S&P 500: UP 1.7 percent at 2,656.87 (close)

New York - NASDAQ: UP 2.1 percent at 7,094.30 (close)

London - FTSE 100: UP 1.0 percent at 7,266.75 (close)

Frankfurt - DAX 30: UP 1.1 percent at 12,397.32 (close)

Paris - CAC 40: UP 0.8 percent at 5,307.56 (close)

EURO STOXX 50: UP 0.7 percent at 3,439.30 (close)

Tokyo - Nikkei 225: UP 0.5 percent at 21,794.32 (close)

Hong Kong - Hang Seng: UP 1.7 percent at 30,728.74 (close)

Shanghai - Composite: UP 1.7 percent at 3,190.32 (close)

Euro/dollar: UP $1.2354 from $1.2321 at 2100 GMT on Monday

Dollar/yen: UP at 107.19 yen from 106.77 

Pound/dollar: UP at $1.4174 from $1.4131

Oil - Brent North Sea: UP $2.39 at $71.04 per barrel

Oil - West Texas Intermediate: UP $2.09 at $65.51 per barrel