Optimism in the Global Markets

The end of the week finally found some reprieve from the burgeoning of constant bad news.  Reports are swirling that US and China are steps closer to reaching an agreement on trade, possibly ending the trade war.   On top of that, the European Union and Britain are working hard on coming up with a deal before Britain leaves the EU. 

After the scheduled trade talks yesterday, the President tweeted that things are going well.  Today’s report shows that China and the US have reached an agreement to ease the tensions on the trade war.  The preliminary agreement would provide some relief on the tariffs placed on the US.  While details are still emerging, the effects of the agreement should show next week.

As the official date of Brexit nears on October 31st, European Union leaders and the Prime Minister of Britain are doing their best to come up with a deal before the deadline.  Talks Thursday intensified and talks are promising, both sides working towards a deal.  Leaders are set to meet next week, and the PM has several proposals to present. 

The European pound surges after investors learned of the renewed hopes of a deal.  Optimism soared throughout the markets after this report.  The Dow, S&P 500, and the Nasdaq all rose significantly.  Even the Asian markets reacted well, surging on average over 2%.