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.
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