Global stocks rally on trade optimism

Global equities rebound continued last week on US-China trade talks progress as President Trump said “something monumental” for both countries could be announced in the next four weeks. The S&P 500 rallied 2.1% and the ICE US dollar index gained 0.1%.

Nikkei and Hang Seng joined other four major developed market stock indexes’ rally last week. Hang Sang logged the sharpest recovery: it rallied 3.0%. Euro and Canadian dollar out of six major currencies reversed previous week’s dynamics against the US dollar, while the range of fluctuations narrowed significantly. The Japanese yen was the leader in terms of percentage change: it slumped 0.7% against the US dollar.

This week JPMorgan and Wells Fargo kick off the first quarter corporate earnings season. And the European Central Bank is expected to leave its key interest rates unchanged on Wednesday, with the effects of negative bond rates remaining in the focus at the central bank’s press conference. On Wednesday UK Prime Minster May will meet European Union leaders to request a short Brexit extension to June 30.