US stocks rise on hopes of China trade thaw
US stocks were boosted by indications that Beijing would ease its tariff policy and in particular that it would cut tariffs on US-made cars to 15%, the same tax levied on car imports from other countries.
Mr Trump said he would not raise tariffs on Chinese imports amid signs of progress in talks between the two superpowers.
He also said he would intervene in the Justice Department’s case against a top executive at China’s Huawei Technologies to help trade negotiations make progress. A court in Canada court yesterday granted bail to Meng Wanzhou which may ease Chinese anger over her arrest.
In a tweet, Mr Trump said the two sides were having “very productive conversations”.
Shares in car companies, including BMW, rose on the reports. Overnight, Japan’s Nikkei jumped 2%, while Shanghai edged into positive territory with a 0.2% rise.
However, the markets may be poised for more volatility amid reports that the US will release evidence this week detailing Chinese hacking and economic espionage.
The Dow Jones Industrial Average was up 319.57 points, or 1.31% by mid-morning, the S&P 500 by 37.69 points, or 1.43% and the Nasdaq Composite by 2.03%.
The FTSE 100 closed at 6,880.19, up 73.25 (1.08%), as the overseas-weighted index took its lead from the US and Asia rather than domestic issues around the Tory no confidence vote.