European stocks are set to climb on Wednesday amid a worldwide market rally after U.S. President Donald Trump on Tuesday postponed the September 1 deadline for 10% tariffs on remaining Chinese imports.
Global stocks rallied on Tuesday after President Trump announced that the U.S. would delay duties on cellphones, laptops and other consumer goods in the hope of dampening their impact on U.S. holiday sales.
The delay affects around half of the remaining $300 billion in Chinese imports. Trade discussions between U.S. and Chinese officials are also set to resume.
Stocks in Asia Pacific traded higher Wednesday afternoon on the news, led by a 1.24% gain for the Shenzhen component, while Hong Kong’s Hang Seng index returned to positive territory despite heightened tensions as protesters continue to disrupt the city’s airport.
The Chinese yuan has also been in focus during recent escalations of the trade war, and the People’s Bank of China on Wednesday set the official midpoint reference for the currency at 7.0312 per dollar, stronger than expected but above the psychological 7 per dollar barrier for the fifth consecutive session.
Back in Europe, the Italian senate on Tuesday postponed a further debate on its ongoing government crisis until next week, frustrating efforts by Lega party leader Matteo Salvini for new elections. Salvini blew up his ruling coalition with the anti-establishment Five Star Movement (M5S) last week, seeking to capitalize on his surging popularity by triggering a general election in the hope of becoming prime minister.
Meanwhile Britain and the United States are reportedly discussing a partial trade accord which could take effect on November 1, the day after the U.K. is set to exit the European Union.