Wall Street is recording its fourth straight day of gains as investors express optimism about the conclusion of midlevel trade discussions between the United States and China.
The Dow Jones Industrial Average rose more than 150 points on Wednesday, with both the S&P 500 and the Nasdaq Composite climbing 0.5 percent. Global stocks also soared at the end of the two-day meeting in Beijing, where officials from both countries convened starting Monday to negotiate a deal that would potentially end a trade dispute that sent the stock market reeling through most of 2018.
According to China’s Foreign Ministry, the talks extended into an unscheduled third day. Reuters reported that both parties showed further signs of progress on issues including the purchases of U.S. farm and energy commodities, as well as greater access to Chinese markets.
The latest round of talks marked the first face-to-face assembly between Washington and Beijing since President Donald Trump and his Chinese counterpart, Xi Jinping, agreed to a 90-day financial truce at the G20 summit in early December.
The ongoing trade war has already seen new tariffs introduced on $250 billion worth of Chinese imports and Beijing respond with levies on $110 billion of U.S. goods. (The White House put on hold its threat to raise levies from 10 percent to 25 percent on $200 billion of those goods it newly tariffed in 2018.)
Ted McKinney, U.S. undersecretary of agriculture for trade and foreign agricultural affairs, told reporters after the meeting that the delegations had a “good few days.” Trump also echoed a similar sentiment in a tweet posted yesterday. “Talks with China are going very well!” he wrote.
Speaking at a briefing on Monday, China Foreign Ministry spokesperson Lu Kang shared hopes of reaching an agreement: “From the beginning, we have believed that China-U.S. trade friction is not a positive situation for either country or the world economy. China has the good faith, on the basis of mutual respect and equality, to resolve the bilateral trade frictions.”
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