Global stocks higher on US-China trade optimism

The Chinese deputy-level trade delegation refused to broach the hot-button issue of forced technology transfers in talks with US counterparts this week unnamed sources told the South China Morning Post

US-China trade talks to resume amid fraught ties and low expectations

President Trump was scheduled to meet with Vice Premier Liu He, China's chief trade negotiator, at the end of Friday's negotiating session between Liu and U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

Total tariffs applied to U.S. goods by China thus far have totalled $185 billion.

While previous lower-level talks between United States and Chinese officials aimed to create a good atmosphere for the upcoming meeting, the USA blacklisting of 28 Chinese companies has generated a negative atmosphere instead, Chinese officials said.

Analysts said equity markets have grown hungry for some sort of breakthrough in the latest round of negotiations. "We are happy about it".

Both sides have slapped duties on hundreds of billions of dollars of goods during the dispute, and Trump is threatening to raise tariffs to 30 per cent from 25 per cent on about $250 billion USA in Chinese goods on October 15 if there is no progress on a deal.

In the spring, officials said a deal was more or less at hand, only to have Washington resume tariff increases in May, accusing Beijing of reneging on core commitments already put down in writing.

The Dow Jones climbed 350 points or 1.3 percent on Friday morning following the news, while the S&P 500 rose 1.3 percent and the Nasdaq rose 1.4 percent. -China trade talks, which headed into their second day in Washington.

The largest percentage gainers in the main Shanghai Composite index were Xinjiang Youhao Group Co Ltd, up 10.07%, followed by China Hi-Tech Group Co Ltd, up 10.06% and HY Energy Group Co Ltd up 10.03%.

"In my opinion, China wants to make a deal more than I do, OK?"

A person familiar with the preliminary deputy-level talks earlier this week said there was little to no progress on some of the core issues the U.S. has been looking at on technology and industrial policy issues.

Hirson said the two sides ultimately may not get through to phase two.

Both sides were due to dine together on Thursday evening.

Expectations were low that the negotiations would do much to resolve a 15-month trade battle that is weighing on the global economy.

'A China mini deal?' Senate Minority Leader Chuck Schumer, D-N.Y., tweeted Friday. U.S. President Donald Trump characterized the discussions as "very, very good". Lawmakers in recent months have grown increasingly wary of what they see as Trump's abuse of that authority and discussed ways to claw it back, citing the president's many unilateral tariff measures and a lack of transparency in negotiations. Liu likely outlined plans for stepped-up imports from the U.S.at Thursday's meeting.

Meanwhile, US central bankers and others believe the trade war is raising the chances the United States could slip into recession.

Liu is leading the Chinese delegation to the talks, while the United States is being represented by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

Left unchecked, the conflict could further slow investment and trade as well as hurt financial market sentiment, the International Monetary Fund has warned.

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