Published: Fri, December 14, 2018
Money | By Wilma Wheeler

Stocks cheered by Trump trade talk; sterling claws off lows

Stocks cheered by Trump trade talk; sterling claws off lows

On Thursday, the U.S. Department of Agriculture disclosed sales of 1.13 million tons to China.

Chicago Board of Trade soybean futures Sv1 scaled to highs not seen since midsummer when China imposed tariffs on US shipments in July.

Trump told Reuters in an interview on Tuesday that China was buying a "tremendous amount" of usa soybeans and would also soon cut tariffs on us autos.

Trump in an interview to Reuters said talks were taking place with Beijing by phone and he would not raise tariffs on Chinese imports until he was sure about a deal.

Sentiment had got a lift on Tuesday from reports China was considering cutting import tariffs on American-made cars to 15 percent from the current 40 percent.

"The Chinese evidently want the beans quickly as they have not been able to cover all their needs in South America", the European trader said.

Asian stock markets rallied on Wednesday as U.S. President Donald trump sounded upbeat about a trade deal with China, while sterling struggled with the risk of an imminent party coup against British Prime Minister Theresa May.

A 25 percent tariff on US soybeans Beijing imposed on July 6 in retaliation for Washington's duties on Chinese goods remains in effect. "However this approach is making China think twice about their hard stance", said Ernesto Ramos, Managing Director of Active equities for BMO Global Asset Management in Chicago.

Also, Trump said he would intervene in a case against a top executive at Huawei Technologies if it would help secure a trade deal.

Of China's $51 billion of vehicle imports in 2017, about $13.5 billion came from North America, including sales of models made there by non-U.S. manufacturers including BMW.

Following are USA trade expectations for the opening of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CST (1430 GMT) on Thursday.

Members of USA and Chinese administrations took up the subject of trade Tuesday morning, setting up a road map on how to move on to the next stage.

Growth in Hong Kong's exports will be almost halved to 5 per cent in 2019 from 9 per cent this year, with the outlook the most uncertain in the coming first quarter amid a temporary truce in the US-China trade war, the city's trade development body forecast on Thursday.

China promised to purchase USA soybeans as part of the preliminary deal forged by President Donald Trump and Chinese President Xi Jinping. China's economy czar and the U.S. Treasury secretary discussed plans for talks on a tariff battle, the government said Tuesday, Dec. 11, 2018. The major auto industries schedule meetings with the US Trade Representative's Office to learn more about the US-China tariff treaty.

Ross said Beijing's offer would help German auto manufacturers in particular as they produced vehicles for the Chinese market at USA auto plants.

The tariff reduction benefits Daimler and BMW more than US automakers such as GM or Ford Motor Co. because the German luxury brands dominate the top 10 list of vehicle imports into China.

Like this: