Wall Street closed in the green on trade talk hopes

Share

President Xi Jinping's government is under pressure to stem the broadening conflict as the trade war adds to the downward forces on China's slowing economy.

Separately, the Financial Times reported that officials in China are offering to increase purchases of USA agricultural products, in order to reach a partial deal. Investors are still hoping for a trade deal, but are not expecting it to come any time soon.

The rally came as investors turned hopeful that the USA and China may make some progress in their latest round of trade negotiations after Beijing reportedly signalled that it is open to a partial deal.

The 15-month-old trade war between Washington and Beijing is dragging down the global economy and threatening to upend decades-old trade systems.

Without significant progress during the talks, US President Donald Trump is set to hike the tariff rate on $US250 billion worth of Chinese goods to 30 per cent from 25 per cent on Tuesday.

"The two countries have been unsuccessfully talking for about a year now". China has counterpunched by taxing $120 billion in USA exports, notably soybeans and other farm goods.

More news: In 11 hours Lionel Messi: Why I plan to stay with Barcelona
More news: India Slips 10 Places On WEF’s Global Competitiveness Index
More news: Rajnath Singh flies in Rafale fighter as France hands over first jet

Chinese government officials told Reuters that Beijing has lowered expectations for significant progress from this week's trade talks with the USA, upset by the blacklisting of Chinese companies.

Both sides should not escalate disputes or they will drift apart, said a second Beijing-based Chinese official briefed on the talks this week.

The Canadian dollar traded for an average of 75.05 cents USA compared with an average of 75.06 cents United States on Tuesday. USA central bankers believe the trade war is raising the chances the United States could slip into recession, according to a readout released Wednesday from last month's Federal Reserve policy meeting.

The trade talks have failed to make serious headway since negotiations collapsed in early May. This would extend US tariffs to just about everything China ships to the United States.

Washington is expected to press new demands for Beijing to protect US intellectual property this week, but both sides have very different views of that topic as well.

This week, a tweet supporting protestors in Hong Kong from the general manager of the Houston Rockets reminded the National Basketball Association and the rest of the world that there are complications about doing business in China that go way beyond intellectual property and state-owned enterprises. "Now it sounds as if China would be willing to engage in some piecemeal accords".

Share