Stock indices swallowed their two-week decline amid new developments in China-US trade and gradually worrying concerns about the coronavirus.
This rapid recovery of the market also alerted investors.
According to the Ministry of Finance of China, they will hold half the tariffs on US imports from February 14, amounting to about $75 billion, as part of its first trade agreement with the US.
The ministry said that tariffs for a number of goods in the US will be reduced from 10% to 5%, and others from 5% to 2.5%. Return import duties were introduced in September and December, because at that time there was hostility between Washington and Beijing.
They also added that the step towards the decline was made to promote the healthy and stable development of China-US economic and trade relations. "China is cutting tariffs. It's the driving force behind today's growth," said chief market strategist, J.J. Kinahan.
"The reduction in tariffs was due to investors' worries that the new virus in China would damage the world's second-largest economy and make it difficult for them to fulfill promises to increase purchases of US goods and services by $200 billion over two years," Kinahan added.
Meanwhile, as expected, on Wednesday, the Senate acquitted President Donald Trump on charges of impeachment for abuse of power and for obstructing Congress. At noon, he delivered a speech in which he called impeachment "a terrible trial."
But, in the meantime, markets are mostly focused on optimistic economic data.
The number of Americans re-applying for unemployment benefits fell 15,000 to 202,000 by the end of the week, reaching a 50-year low. According to a MarketWatch survey, productivity growth accelerated to 1.4% in the fourth quarter, which is lower than the consensus growth forecast of 1.6%.
Investors also hear positive from Federal Reserve speakers at the very moment when Dallas Fed President Robert Kaplan tells an audience in Austin that he expects "solid" economic growth in 2020 by 2.3%.
The material has been provided by InstaForex Company - www.instaforex.com