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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
See an opportunity to trade?
Go long or short on more than 13,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.