On May 9th, the three major U.S. stock indexes closed higher collectively overnight. By the close of trading, the Dow Jones Industrial Average (DJIA) rose by 0.62% to 41,368.45 points, the S&P 500 Index increased by 0.58% to 5,663.94 points, and the Nasdaq Composite Index gained 1.07% to 17,928.14 points.

In terms of specific companies, Boeing and Disney both rose more than 3%, leading the DJIA. Among the seven major American tech giants, Tesla rose more than 3%, while Google increased by nearly 2%. Most Chinese stocks closed higher, with the NASDAQ Golden Dragon China Index rising nearly 1%.

This rally in U.S. stocks may have been influenced by a new trade agreement reached between the United States and the UK, which saw the withdrawal of certain tariffs in specific areas between the two countries.

U.S. President Trump also publicly stated that if the trade agreement and tax cuts were realized, "you'd better go out and buy stocks now."

The UK and the US Reach Consensus on Tariff Trade Agreement Terms

Local time on May 8th, U.S. President Trump announced at the White House that the United States and the UK had reached a new trade agreement, partially withdrawing tariffs in specific areas and further expanding market access for each other's products. Trump stated that the final details of the agreement would be finalized in the coming weeks.

Relevant information shows that the British government agreed to make concessions in importing American food and agricultural products in exchange for the U.S. lowering tariffs on British automobile exports. Negotiations will continue, covering the pharmaceutical industry and other reciprocal tariff projects. Both countries also agreed to launch negotiations on a digital trade agreement.

Specifically, the White House released a document showing that the first 100,000 vehicles exported annually from the UK to the U.S. will be taxed at an additional rate of 10%, while any amount exceeding this will be taxed at an additional rate of 25%. The UK will reduce or eliminate non-tariff barriers, increasing market access for American beef, ethanol, grains, and some industrial products.

In addition, according to a statement released by the UK government on its official website, tariffs on steel and aluminum products exported by the UK to the U.S. will be canceled. Within a certain quota, zero tariffs will apply to agricultural products exported from the UK to the U.S. The UK will reduce the tariff on ethanol imported from the U.S. to zero.

U.S. Commerce Secretary Lighthizer revealed at the White House when announcing the bilateral trade agreement between the UK and the U.S. that the UK would purchase $10 billion worth of Boeing aircraft, and this procurement is a private sector initiative, with specific details to be announced by relevant airlines. Trump said, "The agreement we reached today with the UK is the first in a series of trade agreements."

It is worth noting that Trump once again called on the public to "buy stocks." Local time on May 8th, Trump stated that if the results of the trade agreement and tax cuts combined could be achieved, "you'd better go out and buy stocks now." After Trump's remarks, the three major U.S. stock indices surged collectively.

Previously, Trump has been questioned about insider trading and stock manipulation due to calling on the public to buy stocks. On the early morning of April 9th, Trump posted on his social media platform: "Now is a great time to buy." He also attached the letters "DJT," which are the stock code abbreviation for Trump Media & Technology Group, a listed company on the U.S. stock market.

The EU Publishes a Retaliation List for $95 Billion Worth of U.S. Goods

Local time Thursday (May 8th), the European Commission announced that it would file a complaint with the World Trade Organization (WTO) against U.S. tariffs and plans to take potential retaliatory measures against $95 billion (approximately $107 billion) worth of U.S. imports, potentially including aircraft manufacturer Boeing.

European Commission President Ursula von der Leyen stated on the same day that the EU remains committed to reaching a solution with the U.S., but at the same time continues to prepare for all possibilities.

Relevant information shows that the proposed countermeasures will be categorized by industry and product type rather than by brand name. This includes U.S. aircraft (valued at 10.5 billion euros), fish, automobiles and automotive parts, as well as U.S. chemicals, plastics, electrical equipment, health products, and machinery. Additionally, export restrictions may be imposed on EU scrap steel and chemical products valued at 4.4 billion euros.

Scrap steel is a raw material for the steel industry and is not included within the scope of U.S. metal tariffs. Approximately 1.3 billion euros worth of U.S. wine, beer, and spirits imports will also be affected. European wine producers have long been concerned that Trump's tariffs will severely impact their industry, as their industry relies heavily on the U.S. market.

The EU previously announced counter-tariffs on $26 billion worth of U.S. goods in response to the Trump administration's imposition of a 25% tariff on global steel and aluminum products. However, the implementation has been postponed for 90 days.

The EU stated that the so-called reciprocal tariffs imposed by the U.S. openly violate basic WTO rules. Since Trump took office, 379 billion euros worth of EU exports to the U.S. have been impacted by tariffs. These tariffs have "increased business costs, suppressed growth, exacerbated inflation, and brought economic uncertainty."

The U.S. and Ukraine Reach a Rare Earth Agreement

Local time on May 8th, U.S. President Trump stated that the U.S. had just reached a rare earth agreement with Ukraine, which has now been fully signed and approved, allowing the U.S. to obtain "a large quantity of very high-quality rare earth materials."

Similarly on May 8th, according to reports by CCTV News, the Ukrainian Supreme Rada (parliament) supported the approval of the U.S.-Ukraine mineral agreement with 338 votes in favor. Earlier on the same day, First Deputy Prime Minister and Economy Minister of Ukraine, Svirydenko, stated that if the agreement passed smoothly in parliament, the "U.S.-Ukraine Reconstruction Investment Fund" would begin operations within weeks.

According to a press release published on the U.S. Treasury Department's website, U.S. Treasury Secretary Yellen said that the two countries had signed a "historic economic partnership agreement." The Treasury Department said that this economic partnership enables the U.S. and Ukraine to work together, invest jointly, and accelerate Ukraine's economic recovery by utilizing the common assets, talents, and capabilities of both countries.

First Deputy Prime Minister and Economy Minister of Ukraine, Svirydenko, stated on social media that she represented the Ukrainian government in signing this agreement. The fund adopts a 50-50 equity structure, co-managed by Ukraine and the U.S. She also emphasized that the agreement clearly stipulates that Ukraine retains ownership and control over its mineral resources.

Ukrainian President Zelenskyy stated on May 1st that the text of the U.S.-Ukraine mineral agreement underwent significant changes during negotiations, and the final version does not include any debt repayment clauses for Ukraine. "This is now a truly equal agreement, creating opportunities for massive investment in Ukraine."

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original Source: https://www.toutiao.com/article/7502262114694742554/

Disclaimer: The views expressed in this article are solely those of the author. You can express your attitude by clicking the "Upvote" or "Downvote" buttons below.