European stocks rally after US-China agree to hold trade talks next week
Stocks in Europe got a slight boost after US officials announce they will visit China next week in a bid to end the trade war between the two largest economies.
European equities rallied in early morning trading on Friday fuelled by the news of US and China agreeing to hold trade talks next week.
The pan-European Stoxx 600 rose by more than 1%, with other major indices including the FTSE 100 and DAX both seeing positive sentiment on Friday drive them higher.
US-China trade talks begin next week
Investors will be following the trade talks between the US and China closely next week, with the ongoing trade war fuelling losses in US and European markets.
Last year, in retaliation to US President Donald Trump imposing new tariffs on $200 billion worth of Chinese goods, China hit back by implementing additional charges on billions of American made goods.
When US officials sit down with their Chinese counterparts next week it will be the first face-to-face meeting between the two largest world economies in over three months.
The trade talks are scheduled to take place in Beijing on Monday and Tuesday next week.
China’s commerce ministry said that the discussions will focus ‘implementing the important consensus’ reached by Trump and Chinese President Xi Jinping at the G20 summit in Argentina on December 1 which saw the pair agree to a temporary truce.
Trade talks offer businesses clarity in uncertain times
Last year saw businesses and financial markets shaken by major macroeconomic headwinds, with the US-China trade war joined by ongoing Brexit uncertainty and a complete government shutdown in Washington, driven by democrats’ unwillingness to fund Trump’s wall.
Businesses and investors will be hoping that US and Chinese officials can end the trade war, with economic data coming out of China and America earlier signalling slower global growth and stoking fears of a global economic slowdown.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
'Introdcution to online trading' seminar
29 October, Al Fattan Currency House, DIFC
- Understand the concept of trading CFDs
- Get to know the IG platform: Learn how to find markets and place trades
- Explore platform features that will support your trading
The session will start at 6:00pm and will last an hour and a half
Live prices on most popular markets