Markets rally on report China and US near deal to slash tariffs

Feng Li/ Getty Images

• Global markets rallied on a report that China and the US are in the "final stage" of a trade deal.
• Washington and Beijing are offering to lower or remove tariffs on some products, the Wall Street Journal reported on Sunday.

Stock markets around the world rallied on Monday after a report that China and the US are in the "final stage" of a trade deal.

The Wall Street Journal reported on Sunday that China officials have offered to trim tariffs and other restrictions on US farm, chemical, auto and other products. Washington, meanwhile, is weighing removing "most, if not all," sanctions on Chinese products. 

With few exceptions, most major markets were in the green on Monday morning. 

"Reports over the weekend signal that the two sides are moving rather more rapidly to a deal than we maybe thought," said Neil Wilson, an analyst at Markets.com.

"But with all this positivity comes the risk that the market is buying on this rumour mill and is becoming more exposed should the good news not materialize." 

The deal is the result of trade talks in February in Washington, the WSJ said, citing people familiar with the discussions. Snags remain and it’s not yet a done deal, the WSJ said. 

Here’s the roundup: 

• US futures jumped on the news, with those underlying the S&P 500, the Dow and the Nasdaq all rising at least 0.4% as of 8.50 a.m. in London (3.50 a.m. in ET). 
• China’s benchmark, the Shanghai Composite Index gained 1.1%; Japan’s Nikkei added 1%; and the Hang Seng in Hong Kong rose 0.5%
• In Europe, the broad Euro Stoxx 50, Germany’s Dax and the UK’s FTSE 100 all increased at least 0.3%

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Source: Business Insider – feedback@businessinsider.com (Trista Kelley)