Markets spurred by US government closure deal and hopes of trade war – live business | Business

Hello and welcome to our slippery coverage of the global economy, the financial market, the euro zone and businesses.

A renewed optimism reigns on the markets this morning, after US lawmakers have reached a tentative agreement to avoid a new government shutdown.

Overnight, Democrats and Republicans have agreed on a new spending package, which includes more money to fund border security. Assuming President Trump points it out, the deal will keep the federal government going beyond Friday.

After weeks of stalemate, Republican Senator Richard Shelby told reporters that an "agreement in principle" had been reached and that the staff would "work hard to gather all the details".

The deal will provide money for fencing on the US-Mexico border, but it does not really look like a victory for Trump.

That's because Congress only provides $ 1.4 billion to strengthen border security, not the $ 5.7 billion requested by the White House.

As my colleague Tom McCarthy explains:

The deal would give much less money for the Trump border wall than the $ 5.7 billion White House wish list, which equates to nearly $ 1.4 billion. Congressional advisers. The funding measure continues throughout the fiscal year ended September 30.

The agreement provides for 55 km of new fences – built from existing designs such as metal slats instead of a concrete wall – but much less than the 215 km requested by the White House in December. The fence would be built in the Rio Grande Valley in Texas.

Funds have also been set aside for technologies such as advanced filtering at border entry points, humanitarian aid and other customs agents.

The news of the breakthrough boosted the Asian markets, where the Nikkei of Japan jumped 2.61%, or 531.04 points, to finish at 20,864.21.

European markets should also rise.

The agreement comes as US authorities gear up for further talks with China on the trade war – a new Trump foe worrying the markets. Treasury Secretary Stephen Mnuchin and Trade Representative Robert Lighthizer are scheduled to meet Chinese Vice Premier Liu He in Beijing on Thursday.

Yesterday, White House advisor Kellyanne Conway revealed that President Trump still wants to meet Xi Jinping in the near future to conclude an agreement, stating:

"This president wants an agreement. He wants it to be fair to Americans, American workers and American interests. "

Given the slowdown in the global economy, investors would like a breakthrough before more tariffs are imposed on US and Chinese products.

Also coming today

Bank of England Governor Mark Carney talks about the global economy and risks for the prospects, at an event organized in London by the Financial Times. Trade wars are likely to occur.

Otherwise, the day is calm.

L & # 39; s calendar

• 13:00 GMT: Bank of England Governor Mark Carney discusses the global economy