Trade talks between the U.S and China concluded earlier today boosting Asian markets and the start of trading in Europe. It could be another good day of trading for the Dow Jones and the wider markets in the U.S too.

In Asia, the markets jumped in response to positive comments from officials.

In China, the Shanghai closed 0.7% higher and the Shenzhen 0.8%. The Nikkei hiked over 1%. All showing a trade resolution could boost Asian economies and slow China’s recent economic slide. Australia’s markets are now on their third day of growth.

In Europe too the major exchanges, including the FTSE, are showing gains of nearly 1% or higher. Oanda analyst Craig Erlam said of the UK markets, also benefiting from a surge in activity from housebuilders:

“Slowly but surely, the numerous headwinds that contributed to the market sell-off in the final quarter of 2018 are becoming less gale force and more strong breeze.”

Trade Talks Went Well, But No One is Giving Details Yet

The extension of trade talks past a planned two days led Chinese officials to confirm both the U.S and China were committed to a resolution. Chinese Foreign Ministry spokesman Lu Kang said:

“I can only say that extending the consultations shows that the two sides were indeed very serious in conducting the consultations.”

The U.S. Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs called the discussions “a good few days.” He added:

“I think they went just fine.”

Like U.S President Donald Trump yesterday, he’s not elaborating either.

Talks with China are going very well! — Donald J. Trump (@realDonaldTrump) January 8, 2019

A Race to Stop 25% Trade Tariffs

The large group of trade, agriculture, and Whitehouse officials must reach a deal with China by March 2, 2018. If not, Trump will proceed with raising tariffs from 10% to 25% likely to affect both Chinese and U.S economies significantly.

Combined with other economic concerns, the impact of interest rate hikes and now the government shutdown, tariffs could return the markets to levels not seen for a decade. U.S. Chamber of Commerce executive vice president Neil Bradley said of the government shutdown:

“The shutdown is harming the American people, the business community, and the economy. The adverse consequences of the shutdown are wide and growing.”

How much ground either the U.S or China will give in the trade talks remains to be seen. However, China yesterday confirmed a number of crop imports from the U.S crucial to American farmers.

The optimism shown in Asian markets, and now Europe today, should inspire the Dow Index, the Nasdaq, and the S&P, when trading opens. Yesterday the Dow Jones closed over 1% higher with nearly every company indexed showing green during the day. That said, the markets may also react to Trump’s border-wall address. There is so far little sign the U.S government is able to progress a bipartisan resolution quickly.