FRANKFURT/PARIS/NEW YORK (dpa-AFX) - Hopes of less economic headwind from global trade disputes between the US administration under Donald Trump and other countries gave stock markets a boost on Monday.
The German benchmark index Dax extended its gains to 1.3 percent around noon, taking it to 20,160 points. The Dax has thus recovered to its 21-day moving average, an important short-term trend indicator. This could initially be a hurdle, but a sustained jump above it could also provide further momentum. The EuroStoxx 50 gained 1.8 percent. In the US, the broad-market S&P 500 was poised to gain.
At the start of the week, the Washington Post reported, citing three people familiar with the matter, that Donald Trump's advisers were considering options for tariffs that would be levied on goods from all countries, but would only include critical imports. This would represent a certain departure from Trump's election campaign promises to impose tariffs on all imports to the US. However, the decisions are still pending, the newspaper writes.
Economists have long warned of the consequences of across-the-board tariff increases. Apart from the negative consequences for exporting countries, they could also end up weighing on the US economy. This is because it would make goods more expensive, leaving consumers with less money for other purchases. Furthermore, inflation could rise again and force the US Federal Reserve to raise interest rates again, which would have a correspondingly braking effect on the country's economy./mis/men/jha/