Stock Markets Surge After US-China Tariff Agreement

The Stockholm stock exchange ended the trading week on a high note across the board, in line with leading European stock exchanges. The market welcomed new tariff news from the US and China and seized on the Trump administration's hopes for more trade agreements.

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Stock Markets Surge After US-China Tariff Agreement
Photo: Anders Wiklund/TT

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OMXS-index ended at the stock market close at plus 2.2 percent.

Among the index heavyweights, cloud service company Sinch rose by 5.2 percent and appliance manufacturer Electrolux by 5.1 percent. Also at the top was investment company Kinnevik, which rose by 4.5 percent.

Saab fell

The share in defense group Saab went against the trend and fell by 1.9 percent, despite Sveriges Radio Ekot reporting unconfirmed information that Peru has decided to buy 24 Jas Gripen planes. Saab has also received a new contract for a training center for the Danish defense worth 680 million kronor.

In addition to Saab, property company SBB also fell, minus 2.2 percent, and clothing chain H&M, minus 1.1 percent.

Positive signals from both the Chinese government and the White House about a trade agreement between the world's two largest economies are boosting the stock market mood globally.

A new tariff offer from the USA to the EU Commission has also been made, according to Bloomberg - but what the EU countries will do with this is still unclear. EU sources describe the offer as "unbalanced" and many expect the negotiations to continue after the deadline Donald Trump previously announced with his "tariff pause" until July 9.

Up on Wall Street

It was also a thumbs up on the market for a tax agreement between the G7 countries, which means that American companies will be exempt from certain taxes abroad in exchange for the Trump administration backing down from a controversial tax proposal that would have effectively meant a penalty tax on foreign investors in the USA.

The stock exchanges on Wall Street closed clearly upwards on Thursday and despite unexpectedly high inflation figures from the USA - which could contribute to slowing down potential cuts in the key interest rate by the USA's central bank Federal Reserve (Fed) - it is green on the US stock exchange after a few hours of trading.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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