Chinese stocks rebounded on Friday to close out the quarter. The Shanghai Composite gained a healthy 2.2%. The rebound came after China took measures to reduce restrictions on foreign investments in industries on Thursday evening.
Despite this move, trade tensions continue to simmer between the US and China.
But this brief respite was enough to pull the rest of Asia up also. Hong Kong’s Hang Seng Composite Index also gained 2.2%. South Korea’s KOSPI Index was up 0.51%. While India’s Sensex Index climbed 0.95%.
The laggard in Asia was Japan NIKKEI Index, which fell slightly by 0.01%.
European Stocks Have Relief Rally
European Union leaders reached an agreement on migration at a tense summit. This caused European equities to rally as political uncertainty eased.
The United Kingdom’s FTSE 100 Index is up 0.8%. France’s CAC 40 Index is up a healthy 1.36%. The German DAX Index rallied a hefty 1.52%.
The Euro followed European markets higher and is up about 0.66% against the US dollar. It’s also trading higher against most other major currencies. The US dollar, on the other hand, is down against most major currencies.
Overall, global equities are seeing risk aversion abate across the board. The global rally seems to be carrying over to the US as futures are up. The S&P 500 futures are up 0.54% as I write this.
Gold is up a slight 0.14%. While oil prices are down 0.3%. The commodities space is trading mostly sideways.
It’s important to note that global markets are currently driven by headline risk. The most prominent example of this is US-China trade tensions.
Accordingly, any new developments over the weekend could send equities into a frenzy in either direction on Monday. Outside of that, next week is likely to be a relatively light trading week in the US because of the 4th of July holiday and a light economic calendar.