Signs of a thawing in tensions inject further momentum into a rebound for stocks
European stocks are on track for their best week since 2016, joining a sharp rally across Asia on Friday, as hopes of a thawing in US-Chinese trade tensions added momentum to a global rebound in markets following a grim October.
Fears that a slowdown in the Chinese economy will be deepened by a further exchange of tariffs between Washington and China have unsettled global investors in 2018. It has also left China as the world’s worst-performing major stock market this year.
However, over the past 24 hours investors have drawn some encouragement from US president Donald Trump posting on Twitter that he had “a long and very good conversation” with his Chinese counterpart, Xi Jinping. The advance in Chinese equities, which were up almost 4 per cent in late trading in Asia, gathered pace after a Bloomberg report that Mr Trump had asked his cabinet to draft terms for a possible trade deal.
“While it is too early to raise hopes of a trade deal, the resumption of communication opens the door to a potential framework for trade negotiations, which would be positive for markets,” said Suresh Tantia, investment strategist at Credit Suisse....MUCH MORE
