Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Wall Street rallies on US-China trade talks

The US stock market recovers after the US and China try to end their trade stalemate.

Wall Street has rebounded on the strength of the renewed trade talks between the US and China. The US stock market rose and increased by almost 100 points.

How China and the Fed affect US markets

The US and China are attempting to resolve a trade stalemate that the two countries reached in 2018. US Secretary of State, Mike Pompeo, and Chinese Vice Premier, Liu He, are meeting to end the tariffs that have hurt China’s economy and impacted the stock of American companies caught in the middle like Apple. The trade talks are renewing optimism that the gridlock can resolved and both nations can de-escalate the trade war between the two nations and end the punitive duties on imported goods.

The US markets are also benefiting from strong employment numbers from December 2018 and dovish comments from US Federal Reserve Chair, Jerome Powell. He noted last week that he would pay attention to Wall Street’s movements more before raising interest rates.

What’s next for US stock market

Even though the US stock market is rallying at the start of 2019, Bruce Bittles, chief investment strategist at Baird, is sceptical about the uptick in US stocks.

‘It would be premature to consider that the volatility in the stock market will disappear and that a sustained new uptrend has begun. Additionally, uncertainty lingers over trade talks with China as does the impact of the slowdown in global growth on the domestic economy,' noted Bittles.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

See your opportunity?

Seize it now. Trade over 17,000 markets on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.