The reduction of the tension between the United States and China today promotes the prices of the heavy industry worldwide. The decrease in tariffs agreed by the two economic powers is a relief for the May of the fears that the commercial war had agitated, that of a generalized contraction of economic growth, and has its best reflection in the rise of raw materials and mining companies. The European Sector Index of raw materials today records an increase close to 6%, the largest since May 2022, with higher promotions for miners such as Anglo American, Antofagasta.
The United States and China have celebrated this weekend a meeting in Switzerland at the highest level after which a 90 -day truce in tariffs have agreed. During that time Washington will reduce commercial rates on Chinese products from 145% to 30%. Beijing will do it from 125% to 10%. Peace is not much less definitive but it is a radical change with respect to the tension scene that began the White House on April 2 and which resulted in a tariff climb between the two largest economies in the world.
The mining sector is one of the most resentful in the stock market in recent weeks, given its close link with economic growth and its dependence on Chinese demand. And today it reacts with the largest stock market increases in Europe, in what the market also interprets as a truce in the threat of global economic contraction because of a commercial war. Not surprisingly, China is the great focus of Trump’s reproaches for the high American commercial deficit and an agreement with Beijing is an important step forward towards a normalization of relations between both powers, in the epicenter of the commercial war declared by the US.
British Anglo American and Antofagasta miners today rise 7.25%and 7%, respectively, while Glencore, the largest intermediary in the world of raw materials and food, rises 6.7%. In the IBEX, the highest increases are also for the heavy and arcel and Acerinox industry, increases of more than 4% are pointed out, together with the 5.5% of IAG.
The airline progresses despite the remarkable increase that also records the price of oil, close to 3%, to place the Brent barrel over 65 dollars. It is also revealing of the relief with which the market receives the agreement between the US and China the price of the Danish AP Moller Maersk, giant of maritime transport, which aim a rise of more than 13%, the largest rise in Stoxx 600.
Stuart Rumble, head of Investments for Asia Pacific in Fidelity International, points out that although reductions in tariffs agreed by the United States are temporary, “they represent a remarkable change in the general effective tariff load. The high tariff regime between the US and China has already caused a great interruption, reducing bilateral trade between the two largest economies in the world and increasing the risk of the world of a broader global deceleration. ” In his opinion, “this short -term respite is an encouraging signal for markets and should help restore some trust.”
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