Global Markets Rally: US-China Agreement Gives Hope

Agreement Winds in Global Markets

Global stock markets gained momentum in the new week due to the United States and China moving a step closer to a trade agreement. With this development, a sense of optimism prevailed among investors.

MSCI Index Hits Record Again

The MSCI index, which tracks global equities, reached a new record level with a 0.3% increase in Japan, South Korea, and the MSCI Asia Pacific indices. Futures for the S&P 500 and Nasdaq 100, which closed at record high levels last week, also started positively this week.

Activity in the Commodity Market

The US-China trade negotiations had a positive impact on the commodity markets as well. Optimism over the agreement caused copper active futures contracts to rise by 1.3% in the morning hours. Additionally, Brent crude prices are trading at a slight increase around $66 per barrel.

What Do Gold and Bond Yields Indicate?

The spot price of gold declined by 1.2%, falling to $4,061 per ounce. On the other hand, bond yields started the new week with an increase. The US 10-year Treasury yield rose by two basis points in Asian trading, reaching 4.03%.

Developments in the Currency Market

The currencies of countries open to China trade, such as Australia and New Zealand, gained value against the dollar. The Bloomberg Dollar Index remained flat at 1,213 points.

Trade Agreement and Future Expectations

The trade negotiators of China and the US announced that they reached a series of agreements on tariffs, shipping costs, and many other issues during their two-day talks held in Malaysia on Sunday. This agreement is seen as a promising development towards reducing tensions between the two countries. In a report by the People's Daily, a call was made to maintain the successes achieved in the trade negotiations.