Global equities recover on US - China trade talk hopes

Easing of US-China trade war concerns and better than expected US corporate reports and economic data buoyed global stock market last week. 1 The SP 500 rebounded 2.4% last week and the ICE US dollar rose 0.2%.

All major global stock indices recovered from sharp drops of last week. Hong Kong’s Hang Seng index booked the biggest gain: it rallied 7.6%. The Japanese yen recorded the biggest change against the dollar among major currencies: it dropped 1.8%.

This week the Reserve Bank of New Zealand and the Federal Reserve meet on Wednesday and Thursday respectively. No changes in monetary policies are expected. And US congressional elections will be held on Tuesday with Democrats expected to take control of the House while the Republicans are likely not only to hold onto the Senate but expand control, according to latest polls.