Asian shares climb on hopes of positive US & China trade talks
Asian shares climbed to four-month highs on Friday on hopes US and China could strike a trade deal
Asian shares climbed to four-month highs on Friday, as the US and China enter into high-level trade talks.
US president Donald Trump will soon meet with Chinese president Xi Jinping to try to finalise a comprehensive trade deal, after top US negotiators began talks in Washington on Wednesday.
It comes after top US officials reported “substantial progress” in two days of high-level talks in Washington.
Trump said on Thursday he was positive that the two economies could reach a deal, calling it “the biggest deal ever made.”
Analysts say they’re mostly sceptical that a genuine trade deal can be done in such a short time frame.
Trump has said that a deal must be reached by March 1, or failure to reach a deal would lead to an increase in US tariffs on Chinese goods.
Investors trade with optimism on positive trade deal outcome
Investors remained optimistic on Friday, with the S&P 500 ending with a 0.86% gain, while the Nasdaq climbed 1.37%, still feeding off the 11% rise in Facebook shares on Wednesday. The Dow slipped 0.06%.
Equity markets relieved after the US Federal Reserve paused interest rate hikes, with investors responding by pricing in a one-in-three chance that interest rates could be cut this year.
The US dollar fell 0.6% so far this week against the yen at $108.85, finding support around $108.50.
The dollar was a shade firmer on Friday at $95.558 resulting from a pullback in the euro to $1.1446.
This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.
Live prices on most popular markets