The China Mail - Stock markets rise on hopes of easing trade tensions

US stocks rallied for a third straight session Thursday, shrugging off signs that US trade deals with China and the European Union aren't imminent despite promising signs elsewhere.

The dollar made solid gains versus main rivals Friday, while oil prices dropped nearly one percent.

"Stock markets are riding a wave of hope that US tariffs will be scaled back, and the White House will provide certainty around future economic policy," said Kathleen Brooks, research director at trading group XTB.

European and Asian markets had halted their rally the previous day after Beijing refuted claims of ongoing trade talks with Washington following Trump playing up the prospects of a deal to lower the 145 percent tariffs imposed on most Chinese exports.

But reports on Friday that China may exempt some US goods from its hefty retaliatory tariffs helped lift equities out of the red.

"While tariffs are unlikely to go away completely, any easing of the trade war will be lapped up by financial markets,” said Russ Mould, investment director at AJ Bell.

Brooks added that markets are benefitting also from strong earnings reports.

Alphabet posted earnings that exceeded expectations for the recently ended quarter, driven by its cloud computing and artificial intelligence operations.

In Europe, Paris and Frankfurt stocks rose in midday deals, as investors brushed off comments from France's economy minister Eric Lombard that a trade deal between the United States and the European Union was a way off.

London's stock market edged down despite positive UK retail data.

Tokyo jumped almost two percent by the close following Japanese media reports that a second round of trade talks in Washington was set for May 1.

The discussions will be closely watched as a barometer for efforts by other countries seeking tariff relief.

Chinese stock indices ended the week fairly steady, as China's top leaders urged more support for the economy and opposed "unilateral bullying" in global trade, according to a readout of a meeting published by state media Friday.

Seoul jumped one percent after US Treasury Secretary Scott Bessent said a trade "understanding" between South Korea and the United States could be reached by next week.

Investors are optimistic also that the US Federal Reserve may cut interest rates sooner than expected.

Fed Governor Christopher Waller said during an interview with Bloomberg Television that he would support interest rate cuts if harsh tariffs hurt the jobs market.

- Key figures at 1045 GMT -

London - FTSE 100: DOWN 0.1 percent at 8,401.30 points

Paris - CAC 40: UP 0.4 percent at 7,532.06

Frankfurt - DAX: UP 0.5 percent at 22,169.14

Tokyo - Nikkei 225: UP 1.9 percent at 35,705.74 (close)

Hong Kong - Hang Seng Index: UP 0.3 percent 21,980.74 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,295.06 (close)

New York - Dow: UP 1.2 percent at 40,093.40 (close)

Euro/dollar: DOWN at $1.1357 from $1.1392 on Thursday

Pound/dollar: DOWN at $1.3309 from $1.3339

Dollar/yen: UP at 143.36 from 142.62 yen

Euro/pound: FLAT at 85.35 pence

West Texas Intermediate: DOWN 0.9 percent at $62.22 per barrel

Brent North Sea Crude: DOWN 0.9 percent at $65.08 per barrel

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B.Chan--ThChM