US-China trade

Stocks surged overnight on Wall Street. The Dow Jones Industrial Average soared 353.01 points to 26,465.54 and the advanced 1% to 2,917.75. The Nasdaq Composite rose 1.4% to 7,953.88. That jump in U.S. markets came after U.S. President Donald Trump said in a tweet he "had a very good telephone conversation " with Chinese President Xi Jinping. He added: "We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting." The summit will start on June 28. The offshore Chinese yuan saw strong gains against the greenback following Trump's comments, it last traded at 6.9067 after seeing levels above 6.93 yesterday, while its onshore counterpart changed hands at 6.9047. Still, one economist voiced doubt about the upcoming meeting. "We do not believe that the meeting will deliver a trade deal, even if the meeting does take place. From the Chinese side, the discussion with US President Trump is expected only to exchange views on fundamental issues concerning the development of China-US relations," Iris Pang, Greater China economist at ING, wrote in a note. "The news on the talks in Osaka is a short term positive for asset markets, but we believe any talks will change little unless either side makes some meaningful concessions, which we do not view as likely at this time," Pang said. Trade tensions between the two economic powerhouses had worsened in recent weeks with both raising tariffs on billions of dollars worth of their goods. Trump had also previously suggested that additional levies could be imposed on more Chinese imports.

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