In spite of low expectations for a breakthrough and combative remarks from U.S. President, China and USA resume trade talks.
Top U.S. and Chinese trade officials met in Shanghai on Wednesday. As a new round of U.S.-China trade negotiations started in Shanghai, Trump warned China against waiting out his current presidential term before finalising a trade deal. Yet, the meeting lasted barely half a day before ending with a sharp response from China’s Foreign Ministry to U.S. President Donald Trump’s warning not to stall.
The two sides will reconvene in September in the United States, the Commerce Ministry said.
This meetings was the first in-person trade talks since a G20 truce last month. There were low expectations despite the fact that the trade row has dragged on for more than a year. The world’s two largest economies slapped billions of dollars of tariffs on each other’s imports. The trade saga disrupted global supply chains and shaking financial markets.
An official survey showed China’s factory activity shrank for the third month in a row in July. This fact underlined the growing strains placed on the world’s second-biggest economy by the trade war. Data on the weekend showed profits earned by China’s industrial firms contracted in June. This fuelled concerns that the bruising trade war will drag on economic growth. June was the first full month of higher U.S. tariffs on $200 billion of Chinese goods.
Later in the day, the U.S. Fed is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago. The Fed will release its rates decision at 18:00 GMT at the end of a two-day policy meeting.
START TRADINGForex – Low expectations for US-China trade talks
Trade Tensions weigh as markets await Fed policy decision.
The dollar was flat around 98.08 after pulling back from a two-month high of 98.206 touched on Tuesday. It is however set for its biggest monthly gain since October and is up for the ninth straight day.
The Japanese yen stood just off three-week lows to the dollar after the BOJ refrained from expanding stimulus.
The euro did not react to the data. It stayed around 0.1% lower at $1.1145, having hit two-year lows last week around $1.110.
Sterling steadied on Wednesday after four days of steep losses, rising 0.2% against the dollar. Yet, it was on track for its biggest monthly fall since November 2016 as investors price in the increased risk of a no-deal Brexit. Against the euro likewise, it inched 0.1% higher to 91.7 pence, off the 22-month low hit on Tuesday. The pound is set for a third straight, lossmaking month versus the single currency.
In commodities, oil prices rise for fifth straight day as market awaits Fed. Brent crude was up 57 cents, or 0.9%, at $65.29 a barrel by 0716 GMT. U.S. WTI gained 41 cents, or 0.7%, to $58.46 a barrel.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money