On Friday, Stock markets in Asia, as well as Europe, benefited from the news regarding the trade war. One day before on Thursday, the U.S. and Chinese representatives met in Washington D.C. It was the first meeting in almost two months. They discussed issues connected with the trade war. This mid-level meeting ended on Friday. It is worth mentioning the high-ranking U.S., and Chinese officials will meet next month in Washington D.C.
On September 20, another news which affected the People’s Bank of China. The central bank of the second-largest economy in the world decided to boost the local economy. According to this decision, a one-year loan prime rate declined from 4.25% to 4.20%. The People’s of China was not the only central bank which saw the need to rejuvenate the economy. A couple of days earlier members of the rate-setting committee voted to cut the interest rates.
Moreover, another Asian economic power which is India reduced the corporate tax rates. India is one of the emerging markets. Such decisions will positively affect the local as well as international investors. Indian companies will have to pay 22% instead of 30%. The Indian government made this announcement on September 20.
Asian and European stock markets
The stocks reacted to the news mentioned above; as a result, many of them strengthened their positions. The pan-European STOXX 600 increased by 0.44% and reached 393.16. The French CAC 40 increased by 0.6% or 33 points to 5,689. The German DAX index rose by 0.14% or 16.76 points to 12,469.
In Asia, there was a similar situation. In Japan, the Nikkei 225 index increased by 0.16% to 22,079. The Shanghai Composite rose by 0.24% to 3,006.
On Friday, stock markets across the continents gained from the trade talks. The reduction of the loan rate in China as well as the corporate tax in India may boost the world’s largest economies.