British election, U.S.-China trade hopes drive markets higher


World markets rose sharply and the British pound jumped on Friday after the nation’s voters moved to end the country’s Brexit crisis and hopes grew of a breakthrough in the protracted U.S.-China trade war.
Sterling gained against the euro and dollar by about two per cent, while global share markets celebrated the British Conservative Party’s thumping win in Thursday’s election.
This is amid optimism that U.S. President Donald Trump’s threat of imposing fresh tariffs on a slew of Chinese goods would be abandoned.
The Euro-Stoxx 600, which is based on 600 companies from 17 European countries, was up 1.57 per cent at 414.07 points in mid-morning trading on Friday.
British Prime Minister Boris Johnson’s benchmark election result has now raised the prospects of the country leaving the EU by the end of January, with the nation’s FTSE 100 share index climbing 1.68 per cent to 7,396.36 points in Friday trading.
Adding to market optimism were growing investor hopes of an end to the Washington-Beijing trade war following a Bloomberg News report that Trump has agreed to sign off on a deal between the two countries.