European and US stock markets rebounded yesterday, helped by reports that China would accept a partial trade deal with the US in key talks this week.
The dollar was mixed while the pound steadied after yet more Brexit-fuelled volatility.
Crude oil prices jumped over one per cent.
China remains open to a limited trade deal as long as US President Donald Trump imposes no more tariffs, Bloomberg News and the Financial Times reported, citing people close to the upcoming talks.
In return, Beijing would offer non-core concessions such as purchases of US agricultural products, the reports added.
“This is likely contributing to the gains we’re seeing in Europe... but unless the US is also willing to accept a limited deal – and nothing currently suggests they are – it may not lead to anything,” noted Craig Erlam, senior market analyst at Oanda trading group.
With less than a week to go before the next round of punitive tariffs is due to hit, Beijing’s top trade envoy Liu He will today meet US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
“Liu He is coming with real offers, it’s not an empty visit,” the FT quoted a source as saying.
Asian stock markets had mostly closed lower yesterday ahead of the reports of possible progress in the talks, which could extend into tomorrow and with Trump present.
Asia tracked losses in Wall Street and across Europe from Tuesday as investors fretted over signs the global economy is slowing.
The International Monetary Fund has forecast the weakest growth in a decade owing to the long-running tariff disputes.
With economic data increasingly weak, the fresh hopes sparked by the reports for today’s talks provided some much-needed support.
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