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European stocks and US futures rose on Monday after Donald Trump appeared to take a more conciliatory tone towards China, saying that the US \u201cwants to help China, not hurt it!!!\u201d<\/p>\n
In a post on his Truth Social platform on Sunday, Trump wrote: \u201cHighly respected President Xi just had a bad moment. He doesn\u2019t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!\u201d<\/p>\n
Trump<\/a>\u2019s post came after the US president on Friday had threatened to impose additional 100 per cent tariffs on China and suggested he could cancel a planned summit with President Xi Jinping later this month.<\/p>\n The threats from Trump, which he made in response to a package of export controls on rare earths<\/a> that Beijing unveiled last week, came after Asian markets closed at the end of the week. But they sent the S&P 500 down 2.7 per cent on Friday, its steepest one-day drop since April.<\/p>\n \u201cThis is the kind of dip we\u2019ve been waiting for\u201d as a buy signal, said analysts at HSBC. \u201cFundamentally, little has changed,\u201d they added, citing the time still left for US-China negotiations and steps already being taken by big companies to mitigate tariffs.<\/p>\n Early on Monday, futures tracking the S&P 500 rose 1.4 per cent, clawing back some of Friday\u2019s drop. Futures tracking the tech-heavy Nasdaq 100 were up 1.9 per cent.<\/p>\n \u201cThe last 72 hours show there is still scope for a negotiated agreement or just the current situation to be rolled forward,\u201d said Geoffrey Yu, a senior strategist at BNY in London.<\/p>\n In Europe, the Stoxx Europe 600 index was up 0.4 per cent by late morning on Monday, with France\u2019s Cac 40 and Germany\u2019s Dax each rising 0.5 per cent. The FTSE 100 was up 0.1 per cent.<\/p>\n In Asia, stock markets fell on Monday in spite of Trump\u2019s more accommodative tone. Hong Kong\u2019s Hang Seng index dropped 1.5 per cent, Japan\u2019s Topix fell 1.9 per cent and Taiwan\u2019s Taiex lost 1.4 per cent. Mainland China\u2019s CSI 300 index closed 0.5 per cent lower. <\/p>\n \u201cThe context matters,\u201d said Arun Sai, senior multi-asset strategist at Pictet. \u201cInvestors were already nervous about market valuations, the AI bubble \u2014 when we\u2019re trading on these valuation levels, it\u2019s fair to have a knee-jerk reaction.\u201d<\/p>\n Bum Ki Son, a senior regional economist at Barclays in Singapore, said economies in Asia were \u201camong the most exposed to trade and China uncertainties compared to other regions\u201d.<\/p>\n The moves came after Beijing criticised Trump\u2019s plan to impose additional tariffs on Chinese exports and threatened new countermeasures on Sunday. \u201cChina\u2019s position on tariff wars<\/a> has been consistent: we do not want to fight but we are not afraid to fight,\u201d said the commerce ministry.<\/p>\n