Markets buoyed as US-China trade talks extended amid signs of progress

Dow, S&P 500, and Nasdaq futures mostly traded sideways ahead of Monday’s opening bell

Dow, S&P 500, and Nasdaq futures mostly traded sideways ahead of Monday’s opening bell

To that end, America carries out what it calls "freedom of navigation operations" by sailing within 12 nautical miles of islands claimed by the Chinese - but which also have rival claims from other nations, including U.S. allies.

Hopes that the U.S. and China would strike a deal, ending their months-long trade deal led to an index of world stocks rising on Tuesday, while the dollar, which hit an 11-week low on Monday, rebounded as the euro weakened on concerns about a slowdown in the euro zone economy. Last year, US President Donald Trump imposed tariff hikes of up to 25 per cent on Dollars 250 billion of Chinese goods.

"Liu's participation in the meeting, held at the ministry's premises, signals that China is attaching high importance to the talks, even if the main participants this time are mid-level officials", Bloomberg wrote.

The U.S. trade delegation includes Deputy U.S. Trade Representative Ambassador Jeffrey Gerrish, USTR Chief Agricultural Negotiator Ambassador Gregg Doud, Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney, Under Secretary of Commerce for International Trade Gilbert B. Kaplan, Assistant Secretary for Fossil Energy Steven Winberg, and Under Secretary for International Affairs David Malpass. No timing was given and it wasn't immediately clear if the USA delegation would release a statement.

It appears trade talks between the US and China are going well as reports suggest the two sides are getting closer on settling their differences.

This week's meetings are the first face-to-face talks since Trump and Chinese president Xi Jinping agreed in December to a 90-day truce in a trade war that has roiled global financial markets.

China's Foreign Ministry Spokesperson, Lu Kang, addressed the encounter during a press briefing later on Monday, stating that Beijing had "lodged stern representations" with Washington. The Trump administration also objects to Chinese industry development plans that Washington, Europe, Japan and other trading partners say violate Beijing's market-opening obligations. US Trade Representative Robert Lighthizer has consistently stressed the latter, emphasizing the importance of binding enforcement mechanisms.

The United States and China are likely to reach a good settlement over immediate trade issues, said U.S. Secretary of Commerce Wilbur Ross, as the two countries open talks on settling a damaging trade war.

Trump imposed import tariffs on hundreds of billions of dollars of Chinese goods a year ago and threatened more to pressure Beijing to change its practices on issues ranging from industrial subsidies to intellectual property and hacking. "China has the good faith, on the basis of mutual respect and equality, to resolve the bilateral trade frictions".

One Chinese official reportedly described the negotiations as "constructive". The threat of US tariff hikes was the "dominating factor" for almost half, while others moved because of higher costs or tighter environmental regulation.

For their part, Chinese officials are unhappy with USA curbs on exports of "dual use" technology with possible military applications. They have tried to defuse pressure for more sweeping change by offering trade concessions including purchasing more American soybeans, natural gas and other exports.

The statement came as trade talks between China and the United States were under way in Beijing, the first round of face-to-face discussions since both sides agreed to a 90-day truce in a trade war that has roiled worldwide markets.

The two countries have held meetings over many months, stalling at times.

The U.S.is looking to crack down on China's business practices, including allegations of technology theft along with slashing the trade deficit and getting more access to Chinese markets.

The U.S. economy grew at an annual rate of 3.4 percent in the third quarter, and unemployment is at a five-decade low. They complain China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged.

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