Traders sent stocks higher on Friday on renewed hopes of de-escalation in the US-China trade war.
President Donald Trump and Chinese counterpart Xi Jinping are set to meet on Saturday in a high-stakes encounter that could determine whether the US follows through on its threat to extend tariffs to virtually all Chinese goods. “I think we have a very good chance” of doing “something,” Trump told reporters at the G-20 summit in Japan, according to Bloomberg.
“Probably the most optimistic outcome this weekend is a renewal of trade talks…which at least delays the hike in tariffs, even if it solves nothing longer term,” said Michael Every, senior Asia-Pacific strategist at RaboResearch.