Trade Tensions Easing: HSBC and Standard Chartered Soar
Shares of HSBC and Standard Chartered experience a significant rise, attributed to a perceived easing of the trade war.
The stocks of banking heavyweights HSBC and Standard Chartered skyrocketed on Monday, grateful for a cool-down in the battering US-China trade squabbles.
HSBC rocketed up almost four percent, propelling its monthly gains past 14 percent. Standard Chartered leapt over seven percent, notching up a whopping 17 percent monthly surge.
The duo, once walloped by President Donald Trump's 'Liberation Day' duties, have found calm waters, boosting their shares back up.
The US and China recently sat down for talks in Switzerland, with Treasury Secretary Scott Bessent praising them as "productive" and "constructive". China's Vice Premier He Lifeng declared the discussions as "in-depth" and "candid".
The meetings followed Trump's imposition of a hefty 145 percent tariff on Chinese imports. China responded with a 125 percent levy on certain US goods.
Following the discussions, the White House revised its overall tariff on Chinese goods to 30 percent, while China cut its tariffs to a mere ten percent. This sparks hope that trade hostilities will ease, although tariffs will still remain much higher than pre-Trump's tariff offensive.
"Markets have welcomed the tentative US-China trade agreement with open arms," Russ Mould, investment director at AJ Bell, shared. "The mere fact that the two countries were talking was already a major win given their tense relations during the first and second Trump terms."
Winning Back Post-Tariff Recovery
Standard Chartered's stock initially trailed behind its FTSE 100 peers in regaining ground after the tariff assault. Both lenders hold vital ties to Asian economies, which suffered substantive tariffs from President Donald Trump.
London-based HSBC, known as one of the largest international banks in Asia, traces its business roots to Hong Kong and Shanghai. Standard Chartered's operations focus on emerging markets and cater to the growing middle class in India, China, and Indonesia, through retail services like savings and checking accounts.
The lenders lost ground when China and the US intensified their trade conflict. While Standard Chartered suffered a loss of 20 percent over five days, HSBC climbed over 15 percent. However, Monday's rally almost leveled these banks back to their pre-tariff trading price. HSBC closed at 882p, just shy of 883p, and Standard Chartered at 1,143p, a hair below 1,152p.
- Trade Talks Progress: A Detailed Analysis
- Temporary Trade Truce: A Breakthrough?
- Easing Trade Tensions: Implications for HSBC and Standard Chartered
- HSBC and Standard Chartered: Stock Market Recovery
- Capitalizing on the easing trade tensions between the US and China, the stocks of banking giants HSBC and Standard Chartered surged, boosting their shares and recovering from the losses inflicted by the US-China trade squabbles.
- The progress in trade talks, as demonstrated by the US and China attempting to find a resolution through negotiations, has sparked a renewed interest in the economy, finance, and personal-finance sectors, with markets viewing the discussions as astep towards alleviating the long-standing trade hostilities.
- With the US and China re-engaging in dialogue, the business community is keeping a close eye on the evolution of bilateral relations, as resolving trade disputes could have profound implications for banking markets, as well as the overall economy and investing landscape.
