Markets rose on Monday.
The S&P 500 rose 0.8 percent, the STOXX Euurope 600 rose 0.8 percent and the Nikkei 225 surged 2.1 percent.
Markets rose after US President Donald Trump and Chinese President Xi Jinping agreed to refrain from escalating their trade dispute in discussions on the sidelines of a meeting of the G20 in Japan.
Despite the truce in the trade war, some analysts remain cautious.
“The biggest question on everyone’s mind is will any armistice stick or will history repeat, and trade war gridlock set in?” asked Stephen Innes, managing partner at Vanguard Markets.
James Cox, managing partner at Harris Financial Group, said that “the reality of the situation is that the potential damage of the trade war is already done”.
Tom Essaye, president of the Sevens Report, wrote on Monday: “Every manufacturing PMI missed expectations this morning, including those from China, Germany, the EU and Great Britain. All of those PMIs are now below 50, signaling widespread contraction in manufacturing activity.”
In the US, the Institute for Supply Management’s manufacturing index fell to 51.7 in June from 52.1 in May but the IHS-Markit purchasing-manager’s index rose to 50.6 in June from 50.1 in May.
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