Stock markets rally after Trump and Xi talk trade

Stock markets rally after Trump and Xi talk trade

Trump said trade talks were "moving along nicely" and that meetings were "being scheduled" at the G20 summit planned in Buenos Aires at the end of this month.

Trump and Xi both expressed optimism about resolving their bitter trade disputes ahead of a high-stakes meeting planned for the two leaders at the end of November in Argentina.

Xi also said in the phone call that he hoped the two world's largest economies will be able to promote a steady and healthy relationship.

The yuan had come under intense pressure to weaken of late, as slowing growth in China and trade tensions with the USA prompted investors to shift away from riskier emerging-market assets.

Stock markets in Europe and Asia rallied this morning after a phone call between President Trump and President Xi raised hopes of a thaw in trade tensions.

The United States has already imposed tariffs on $250 billion worth of Chinese goods, and China has responded with retaliatory duties on $110 billion worth of USA goods.

China and the US, the world's two largest economies, are in a bitter trade dispute.

It was unclear if Trump was easing up on USA demands that China has resisted.

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The Trump administration has imposed tariffs on $250bn of trade with China this year and has threatened to hit all imports from China, which were worth $505bn last year.

Jacob Parker, vice president of China operations at the US-China Business Council in Beijing, said there were plenty of challenges that would require significant negotiations in advance of a meeting between Trump and Xi to ensure success.

"The economic teams of the two countries should strengthen contact, conduct consultations on issues of mutual concern, and push for a mutually acceptable solution to China-US economic and trade issues", Xi said. "We talked about many subjects, with a heavy emphasis on Trade", Mr Trump tweeted. In response, Beijing said it would impose taxes on 5,207 United States imports worth about $60 billion.

The U.S. president said Wednesday that he'd like to sit down and make a "fair deal" with China on trade that would eliminate the need for the massive tariffs he's put on the nation.

Alexander said he would be discussing trade with Li, though neither of them mentioned the ongoing tariff war in remarks in front of reporters. "We have a new deal", he said adding that the U.S. is now negotiating with the European Union, which "has absolutely hurt" the United States.

Trump administration officials have said that trade talks with China can not resume until Beijing comes up with specific actions it is willing take to meet U.S. demands for sweeping changes to policies on technology transfers, industrial subsidies and market access.

In recent months China has repeatedly questioned the US's sincerity in trade talks, wary of agreeing to something only to have Trump change his mind.

One person said a sticking point in any potential deal is intellectual property theft, where the Trump administration has sought to take a hard line. I think we have a long way to go.

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