Wall Street rises as Chinese president eases trade worries

President Donald Trump speaks during a cabinet meeting at the White House Monday

And the fact that China and the United States are now locked in an escalating fight over trade likely won't help.

On Friday, Trump had warned of tariffs on an additional $100-billion (R1.2-billion) worth of Chinese imports, to which Beijing responded by saying it would stand firm.

Financial markets have reacted positively to Xi conciliatory speech, bidding up riskier assets such as stocks and commodity currencies like the Australian dollar.

He pledged to further open up China's financial services sector, lower tariffs on vehicle imports, encourage other imports and better protect intellectual property - the latter issue being one of the key grievances of Donald Trump's White House. Yi said Beijing will "substantially expand the business scope of foreign banks", and impose no restrictions on the business scope of joint-venture securities companies, the official Xinhua News Agency reported.

The new White House economic adviser, Larry Kudlow, said Sunday that a "coalition of the willing" - including Canada, much of Europe and Australia - was being formed to pressure China and that the US would demand that the World Trade Organization, an arbiter of trade disputes, be stricter on Beijing. In recent days, Chinese officials have expressed increased frustration with the US, with the foreign ministry on Monday calling talks "impossible" under current conditions.

"U.S. soybeans assaulted the Chinese market", said Liu, who was visiting a soybean industry exhibition this week in Shanghai. He promised progress on areas that are US priorities including opening China's banking industry and boosting imports but didn't address key irritants for Washington such as a requirement for foreign companies to work through joint ventures that require them to give technology to potential local competitors.

The US president welcomed the speech and said he saw an end to the dispute, which has roiled markets since the start of March.

The speech at the Boao Forum for Asia in the southern province of Hainan had been widely anticipated as one of Xi's first major addresses in a year in which the ruling Communist Party marks the 40th anniversary of its landmark economic reforms and opening up under former leader Deng Xiaoping.

The market has been jittery as investors anxious about tariffs and other barriers to trade.

Trump praised Xi's "kind words on tariffs and automobile barriers" on Tuesday. Jinping also announced plans to enforce the legal intellectual property of foreign firms, another issue contested by the US. "We will make great progress together!" he tweeted. He promised progress on areas that are US priorities, including opening China's banking industry and boosting imports to China.

"If China doesn't import goods from the United States it's going to import them from other countries.in that sense the disputes between China and the United States could bring opportunities", said Jia. I don't blame China; I blame our representatives, frankly.

In stock markets, U.S. S&P 500 E-mini futures rose by as much as 1.5 percent and were last up 1 percent.

Asian and European equities rebounded somewhat, despite heavy pre-weekend losses on Wall Street, as trade war fears gave way to investor optimism - but doubts remain.

"China refuses to play by the rules of global trade", said U.S. Sen.

"This trade war is making our prospects really bright this year", said Liu, the farmer. The Dow Jones industrial average added 1.2 percent to 24,483.05.



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