The FTSE 100 staged a recovery yesterday after days of brutal selling on hopes that Donald Trump will agree tariff deals.
After a bloodbath on markets over recent days, the blue-chip index joined other world stock markets in clawing back some of its huge losses as the US President spoke positively about negotiations.
Trump said talks with Beijing ‘will happen’ after he this week threatened to hike tariffs on China above 100 per cent.
However, officials later confirmed that these were still set to take effect, wiping out earlier gains on Wall Street in further turbulent trading.
Global markets have been in turmoil since the President announced plans to slap import levies on trading partners, stoking fears of a worldwide recession. And analysts yesterday warned there could be ongoing volatility in reaction to further announcements from Trump.
The FTSE 100 ended the day up 2.7 per cent after falling 4.4 per cent a day earlier and 5 per cent on Friday.
Deal talk: The FTSE 100 joined other world stock markets in clawing back some of its huge losses as the US President spoke positively about negotiations
The index was still down more than 8 per cent compared with last week when Trump announced what he called ‘Liberation Day’ with a slew of tariffs on countries that he accuses of unfair trading arrangements with America.
The rebound was also a sign that some investors were buying stocks at bargain prices in the hope of cashing in if the market soars.
Susannah Streeter, head of money and markets at broker Hargreaves Lansdown, said: ‘With hints of negotiations in the air, relief has flooded through, with the FTSE 100 rebounding from a chunk of yesterday’s losses. Investors have taken the chance to buy into beaten-up stocks, with an eye on a longer-term recovery.’
Russ Mould, investment director at AJ Bell, said: ‘Investors are focused on tariff negotiations with the hope that tariff recipients can strike deals with the Trump administration so they aren’t subject to the full severity of levies outlined in the Liberation Day speech.’
Trump yesterday said there was a ‘probability of a great deal’ with South Korea and that talks with Beijing ‘will happen’.
‘China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen,’ he wrote on his Truth Social platform.
However, Beijing – which has already retaliated by slapping a 34 per cent tariff on imports from the US – vowed to ‘fight to the end’. Many experts remained cautious.
Anthony Willis, senior economist at Columbia Threadneedle Investments, said: ‘The next few days, when we will see if and how much countries wish to negotiate with the US, will help guide how much worse things can get.’
Asian stocks had staged a recovery on Monday night. Hong Kong’s Hang Seng rose 1.5 per cent and Tokyo’s Nikkei 225 surged 6 per cent on reports that Japan had jumped to the front of the queue for tariff negotiations with the US. China’s Shanghai Composite rose 1.6 per cent.
And in Europe yesterday, Germany’s DAX rose 2.5 per cent, taking it into positive territory for the year, and Frances CAC 40 increased 2.5 per cent.
Wall Street opened sharply higher, with the S&P 500 adding more than 3 per cent.
But by the close it had reversed 1.6 per cent, the Dow Jones Industrial Average was off nearly 1 per cent and the tech-focused Nasdaq Composite had slid more than 2 per cent.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .