U.S. equities are also buoyed by August home sales which rose 7.1% surpassing expectations. Earlier, stocks in Europe and Asia both ended lower not helped by continuing trade war jitters.
The EU is said to be mulling tariffs on U.S. exports, amounting to some $4bn, due to a WTO dispute over prohibited subsidies according to sources. The reaction would appear to be retaliation against the U.S.’s planned duties of $7bn of EU exports due to illegal aid given to Airbus. Should both sides implement their planned tariffs, this would be a second large trade war that would serve as another drag for the global economy.
WTI crude sank to the $56 dollar level after Saudi Aramco claimed they were ahead of plan in terms of bringing back supply online after the recent drone attack on its facilities. Havens such as gold and palladium also steadied as worries led investors to safer assets.