Now when the United States and China are close to strike their tariff deal to end their trade war, the Dollar elevated on Monday. It is expected that United States would lift most or all of its tariffs on China. A summit between presidents of both countries is expected to happen this month. Trump has delayed to impose 25% tariffs on Chinese goods and asked China to immediately remove tariffs on U.S. agricultural products.
Chinese shares are most profitable in Asia with a blue chip index of almost 3%. There are some other economies which also rose on Monday including Australian shares which rose by 0.4% and Hong Kong Seng by 0.7%. London’s FTSE futures added 0.5 percent. Japan gains 0.3% with overall index has risen to 10% so far this year.
It is a time for economy to stabilize from current slowdown, specifically U.S and China should help to gain confidence among investors. March is again expected to be a crucial month for both global and trade markets. While the U.K. parliament who votes on Britain’s exit from European union could be responsible for future rate hikes and reduction in balance sheet.
In addition to this, U.S. personal income has fallen for the first time in more than 3 years last month but Dollar eased to be on a good spot against Japanese yen which rose to 111.95
Meanwhile, oil prices tautens on Monday with 21 cents at $65.28 a barrel and crude at $55.99