Uncertainty around a potential long-term trade deal between United States and China overshadowed markets.
A protracted trade war between China and the United States has been weighing on the markets. The tariff war between the world’s two biggest economies has disrupted supply chains and roiled financial markets.
Leaders from the United States and China encountered a new obstacle in their struggle to end the damaging trade conflict. The summit at which they were supposed to meet was cancelled because of violent protests in host nation Chile. U.S. President Donald Trump tweeted a new location would be announced soon for signing a “Phase One” trade deal.
China’s commerce ministry said in a statement on Thursday that bilateral talks will continue to proceed as previously planned. He added that the lead trade negotiators from both countries will speak by telephone on Friday.
Chinese officials have doubts about whether they can reach a comprehensive long-term trade agreement with Washington and U.S. President Donald Trump. However, news that Beijing could remove extra tariffs imposed since last year on U.S. farm products fanned hopes that a trade deal remains possible.
Market participants remain concerned about a slowdown in the U.S. economy as the trade war continues.
START TRADINGForex – Long-term trade deal has a long way to go
Investors will now eye the Labor Department’s jobs data on Friday, which will shed light on the strength of the U.S. economy.
The US dollar fell to a 10-day low against leading rivals. The dollar index dropped as low as 97.22, the lowest since Oct. 21, before retracing to 97.38, down 0.27% on the day.
The Canadian dollar was little changed at about C$1.3160, or 75.99 U.S.cents, after the release of manufacturing data.
The Japanese yen gained to a two-week high as optimism that the United States and China would reach a trade deal faded. The Bank of Japan kept monetary policy steady.
The euro rose against the dollar on Thursday after better than expected euro zone GDP data. The common currency was last up 0.1% at $1.1161, after earlier reaching a 10-day high of $1.11755.
Sterling rose on Thursday and could score its biggest monthly rise in more than a decade. The combination of a weak dollar and the falling risks of Britain leaving the European Union without a deal has fuelled demand. Against the greenback, the pound rose 0.3% at $1.2941. Versus the euro, the pound has gained 0.2%.
Oil prices came under pressure on Thursday from rising U.S. crude oil stocks and weak factory activity in China. Few bullish factors are seen on the horizon.
Brent crude futures were down 13 cents at $60.48 a barrel by 1338 GMT, erasing earlier gains. WTI crude futures were down 48 cents at $54.58.
Gold rose on Thursday as the dollar came under pressure after the U.S. Federal Reserve cut interest rates. Spot gold climbed 0.9% to $1,507.98 an ounce, having earlier risen to a nearly one-week high of $1509.80.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money