Published: Sat, August 31, 2019
Money | By Ethel Goodwin

Risk is On After Positive Trade Comments from China

Risk is On After Positive Trade Comments from China

The Dow and the broader U.S. stock market rallied sharply Thursday, buoyed by hopes that trade tensions between the United States and China might ease.

Departing from the tit for tat reaction in the tariff war with the United States, China on Thursday said it would not retaliate against the latest US tariff hikes announced by President Donald Trump last week.

Chinese and USA trade delegations have maintained "effective" communications to create proper conditions for further negotiations, said a spokesman of China's Ministry of Commerce, calling for a "calm attitude" in resolving the dispute.

US President Trump said in a radio interview that talks "at a different level" would take place today.

San Francisco Federal Reserve President Mary Daly said on Thursday that uncertainty and a global growth slowdown are having an impact on the US economy and she was in "watch and see" mode in assessing the need for another USA interest-rate cut.

Oil prices rose on Thursday to extend recent gains after China indicated it won't immediately retaliate against new USA tariffs.

The transfer prompted Trump to right away combat again, saying he'd improve present and future levies on Chinese language items - sending the U.S. markets right into a tailspin.

Gao's remark was seen as a signal that China will not immediately fight back following Trump's latest tariff threats, analysts said.

Gao Feng, spokesperson for China's Ministry of Commerce (MOC), gestures at a press conference in Beijing, capital of China, Aug. 29, 2019.

Trump, speaking by phone to a farm trade show audience in Decatur, Illinois, said that he could do a "quick deal" with China to boost his 2020 re-election prospects.

"China's most recent response of announcing a new tariff increase on US goods has shown that the current action being taken is no longer appropriate", USTR said in its notice announcing the higher tariff rates.

US stocks rallied alongside European stocks Thursday as investors saw reason for trade-talk optimism.

He did not answer directly when asked if his remarks suggested China would not retaliate against the latest United States tariff threat.

China has consistently denied Washington's accusations that it engages in unfair trade practices, vowing to fight back in kind and criticising United States measures as protectionist.

Since March 2018, China and the U.S. have been involved in a trade war that has affected a large part of the global trade and the tensions have also have affected other spheres, including technology and diplomacy.

The survey showed U.S. companies are losing sales because their Chinese customers increasingly view U.S. companies as unreliable business partners given the volatility of the bilateral commercial relationship.

The trade dispute between the world's two largest economies boiled over in July 2018 into tariffs on hundreds of billions of dollars' worth of each other's goods and now threatens to engulf all U.S.

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