Oil up after China said it would hold vice-ministerial level trade talks with the United States in Beijing next week.
The two economic giants try to settle their trade dispute causing damage to both economies and bothering global financial markets.
China and USA disrupted the flow of hundreds of billions of dollars’ worth of goods threatening a global economic slowdown.
In a statement China’s commerce ministry said that a working team led by Deputy U.S. Trade Representative will come to China.
At the G20 summit in Argentina last year, U.S. President Trump and Chinese President Xi Jinping agreed to a ceasefire. Both sides agreed to delay on imposing new tariffs for 90 days in an attempt to negotiate a deal.
China and the United States are ahead of a key March deadline for talks to end the damaging trade war.
- World stock markets rallied on Friday after the announcement regarding the new round of trade talks on 07-08 January. Europe’s STOXX 600 index rose 0.8 percent while Germany’s DAX jumped 1 percent.
- Nikkei .N225 skidded over 2% on its first trading day of the year. Growth worries and the strength of the yen held back the Japanese index.
Forex – Commodities – Oil up, Yen down ahead of US-China trade talks
The yen edged back from its recent surge on Friday on hopes U.S.-China trade talks would make some progress. However, the Japanese currency remains well bid by investors fretting about a global economic slowdown. The Japanese currency fell as much as 0.6% against the dollar to 108.31 before recovering some of those losses.
The euro held above $1.14. The single currency traded up 0.1% at $1.1410. The dollar index, which measures the greenback against a basket of rivals, was 0.1% lower at 96.189 .DXY.
Sterling rose on Friday after suffering heavy losses spurred by fears of a global economic slowdown. However, uncertainty about Brexit kept its gains in check. The pound sank to its lowest since April 2017. Versus the euro, it rose 0.2% to 90 pence. A parliamentary debate on May’s deal with Brussels kicks off next week. Further, a vote is scheduled for the week of Jan. 14.
The news of the U.S./China trade talks boosted oil prices, with Brent crude oil was 1.9% higher at 57 dollars per barrel LCOc1. A survey showed China’s services sector expanded in December, while signs of lower crude supply also lent support.
Copper prices rallied on Friday from the previous day’s 18-month low after China announced new trade talks with the USA.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.