U.S. stock futures jump after Mnuchin says trade war 'on hold'

Trump's promise to save ZTE's Chinese workers was out of character for the 'America First' president

Trump's promise to save ZTE's Chinese workers was out of character for the 'America First' president

More tough trade bargaining is still to come between the world's two biggest economies. He views the massive USA trade deficit with China as evidence that Beijing is engaged in abusive trading practices and has outmaneuvered previous US administrations.

The Dow Jones Industrial Average rose 298 points, or 1.2 per cent, to close above 25,000 for the first time since March. President Donald Trump had threatened to slap tariffs on up to $150 billion in Chinese imports, and Beijing vowed to respond in kind. As long as they do that, they are unlikely to introduce any tariffs.

The Dow rose, led by gains in shares of Boeing and those of General Electric, recently up 3.8 percent and 2.9 percent respectively.

Still, Mr. Trump rubbed Democrats' faces in the promising developments, singling out his nemesis Senate Minority Leader Charles E. Schumer of NY. "You may include areas of the market that are involved in trade with China, I think that's what's going to help".

Trade analysts and China watchers were underwhelmed.

"We hope that the China-U.S. trade and economic relations, which are mutually beneficial and win-win in nature, will play a more effective role", said the spokesperson.

Shares of GE climbed after the company agreed to merge its transportation business with Wabtec in a transaction valued at about US$11.1 billion.

As a result, the Grains Council may dial back plans made during China's investigation to find more buyers in other countries for US sorghum, Sleight said.

In response to a personal request from Chinese President Xi Jinping, Mr. Trump ordered a review of the ZTE case.

USA stocks opened higher on Monday as investors cheered an easing of trade tensions between China and the United States.

China pulled back from retaliating with tariffs on about $50 billion worth of American goods.

Treasury Secretary Mnuchin predicted a big increase — 35 percent to 45 percent this year alone — in farm sales to China and a doubling in sales of energy products to the Chinese market.

FILE - U.S. Treasury Secretary Steven Mnuchin, right, and a U.S. delegation arrive at a hotel in Beijing for trade talks with China, May 3, 2018.

"The [Section] 301 is a cocked pistol that's ready to be fired whenever it needs to be fired", he said on Fox Business Network's "Mornings with Maria".

As a result of the shale gas boom, the USA is avidly seeking new export markets and wants to compete with Russian Federation and Norway, the EU's current main gas suppliers.

Much of the dealmaking remains unfinished, including a rewrite of the North American Free Trade Agreement.

China responded by targeting $50 billion in US products, including soybeans — a direct shot at Trump supporters in America's heartland.

"Neither side has made significant commitments at this point".

Lovely, the Syracuse economist, said the US was distracted by an "ill-advised focus" on the trade deficit.

Signs of easing trade tensions between the USA and China sent stocks solidly higher on Wall Street, giving the Dow Jones industrial average its biggest gain in two weeks.

If trade talks with China fizzle, the president may soon feel pressure to clamp down again, especially with congressional elections looming in November.

Questions also remained over the administration's handling of ZTE. There was nary a word about Trump's signature demand that China cut its trade deficit with the U.S.by $200 billion. The index had been showing signs of Fear just a month ago.

John Vail, chief global strategist at Nikko Asset Management, said that the negatives of a stronger dollar for large multinationals would be outweighed by the fact that big U.S. businesses may be more free to do business in China without fear of tariffs and a trade war. "People view this trade war "on hold" as a positive".

"This is an indication of what we'll see near term, because we are through earnings, relatively light on macro data, and with geopolitics, it seems like some of the emotion has been reduced between now and the Korean summit", according to Charlop.

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