A tariff reprieve, but weak data halts stock rally in Europe2019|01:38
Donald Trump blinked... and markets jumped. The U.S. president delaying tariffs on some Chinese imports. Apple and other tech stocks among the big gainers as a result. Shares in the iPhone maker up over 4 percent in U.S. trade Tuesday (July 13). Cellphones and laptops among the consumer goods given a tariff reprieve. The news saw the S&P 500 close 1.5 percent higher. Asia then got a boost too. Japan's Nikkei index up one percent. South Korea's Kospi not far behind. There's a big 'but' though. Underlying economic data not looking good. China's industrial output growth slowed to less than 5 percent in July. That's much weaker than expected, and it's the trade war with the U.S. largely to blame. The news saw stocks in Hong Kong and Shanghai pare earlier gains. It also sent oil prices into reverse. Brent crude down almost one percent in early trade Wednesday (July 14), erasing some of its near five percent gain the day before. Perceived safe havens like the Yen and U.S. treasuries on the up instead. Signs of weakness in Europe too. Germany's economy now teetering close to recession. GDP shrank point-1 percent in the second quarter. Everything from tariff wars to Brexit sapping demand for its exports. The data enough to stop any relief rally reaching European shores. Key indexes there falling in early trade.