China country-specific exchange traded funds were among the best performers Monday after President Donald Trump and Chinese President Xi Jinping agreed to a cease-fire in the trade war that gripped global markets this year.
Among the better performers on Monday, the VanEck Vectors ChinaAMC CSI 300 ETF (NYSEArca: CNXT) increased 4.5%, KraneShares Bosera MSCI China A ETF (NYSEArca: KBA) advanced 3.9%, CSOP FTSE China A50 ETF (NYSEArca: AFTY) jumped 3.8% and Xtrackers Harvest CSI 300 China A-Shares ETF (NYSEArca: ASHR) gained 3.4%. The broad China A-shares ETFs all broke above their short-term trend lines at the 50-day simple moving average as well.
Markets strengthened after Trump and Xi reached a deal Saturday to temporarily halt tariffs that were planed to go into effect at the start of 2019, the Wall Street Journal reports. Meanwhile, China agreed to open up its markets to U.S. goods, cutting tariffs on American-made cars.
Related: Dow Climbs Over 300 Points as Trump, Xi Agree to Cease Fire on Tariff War
The relief rebound on Monday helped pare some of the losses the markets have experienced throughout the year, especially over November as U.S. crude witnessed its worst month since 2008, 10-year Treasury yields slipped below 3% and stocks continued to stumble along.
“After a few rough months, we were due for a relief rally and the trade news is helping fuel it,” Geoffrey Yu, head of the London investment office at UBS Wealth Management, told the WSJ. “Trade has been a major headwind for markets and that has now been alleviated to some extent.”