Wall Street Expands Gains as US-China Trade Talks Spark Optimism

On Friday, Wall Street experienced an uptick amid renewed optimism surrounding US-China trade talks. This development comes as US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer prepare to meet with China’s Vice Premier He Lifeng in Switzerland this Saturday, potentially paving the way for the de-escalation of ongoing tariff tensions. The markets responded positively, with European stocks, including the FTSE 100, also gaining ground. This surge in investor confidence follows the announcement of a trade deal between the UK and the US, signed Thursday, which has further underpinned market sentiment. As trade discussions loom in Switzerland, there is hope that this may represent a significant step toward resolving the tariffs that have characterized US-China relations. Derren Nathan, head of equity research at Hargreaves Lansdown, commented, “The diplomatic offensive presented conjointly by president Trump and Keir Starmer from Washington and Solihull has ignited a feint spark of optimism in equity markets.” Market updates show the FTSE 100 finished the day up by 0.2%. Meanwhile, Germany’s DAX rose 0.6%, marking a new record since March, and France’s CAC also witnessed a 0.6% increase. Overall, the pan-European STOXX 600 climbed by 0.4%, demonstrating a broad positive trend across European indices. In the US, major indices also saw advances: the Dow Jones Industrial Average increased by 0.2%, the S&P 500 gained 0.4%, and the Nasdaq Composite rose by 0.5%. Additionally, the British pound strengthened by 0.25% against the US dollar, highlighting a favorable shift in currency markets. The Euro Stoxx Volatility Index, often referred to as an index of fear, decreased by 2% to approximately 20 points, its lowest level since late March, further indicating a positive market outlook. Trade data from China revealed that exports increased by 8.1% year-on-year in April, a modest decline from 12.4% the previous month. Notably, exports to the US plummeted more than 20%, attributed to the hefty tariffs imposed by the Trump administration. The latest performance of the FTSE 100 can be found here. Germany's DAX index information is available here. For updates about the CAC index, visit this link. The performance details for the STOXX 600 index are accessible here. For real-time information on the Dow Jones, check this page.