Tuesday, 15 May 2018

Markets mixed as Trump offers help to ZTE

Markets were mixed on Monday.

The S&P 500 rose 0.1 percent and the Nikkei 225 rose 0.5 percent but the STOXX Europe 600 fell less than 0.1 percent.

Political issues played a part in Monday's trading.

US President Donald Trump had said in a tweet on Sunday that he was working with Chinese President Xi Jinping to keep struggling Chinese telecom giant ZTE in business after the latter was hit by sanctions imposed by Trump. This comes ahead of the trade talks tentatively scheduled for this week between the US and China.

“We’re getting a bump higher on this trade news, since it seems like Trump is backing off his rhetoric with China,” said Paul Nolte, portfolio manager at Kingsview Asset Management.

In Europe, Italy's FTSE MIB rose 0.3 percent after 5 Star Movement and hard-right League party over the weekend reportedly reached a deal on forming a governing coalition.

In Asia, the FTSE Bursa Malaysia KLCI ended 0.2 percent higher after opening nearly 3 percent lower following the surprise election victory of former prime minister Mahathir Mohamad's opposition coalition.

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