Trump Wants Trade Deal With China to Boost Stocks

U.S. President Donald Trump is increasingly eager to strike a deal with China soon in an effort to perk up financial markets that have slumped on concerns over the trade war, according to people familiar with internal White House deliberations.

Talks between mid-level U.S. and Chinese officials in Beijing concluded on Wednesday, according to a U.S. government official who asked not be named. The negotiations had been extended for a day, which added to optimism fueled by tweets from Trump that the two sides are making progress toward an agreement.

According to the Global Times editor-in-chief
Trade talks were conducted in a pleasant and candid atmosphere.
Neither side has made a briefing because US delegation is on the plane right now.
Both sides will release message at the same time on Thursday morning Beijing time.
The waiting game continues but in all likelihood, it appears that they will want to communicate something slightly more positive. Although it can be argued that much of that optimism has already been baked into markets over the last two days.

Inside the White House, some key economic advisers are campaigning for a quick resolution to the trade conflict to help soothe battered markets. The S&P 500 Index has fallen about 8 percent since Trump and Chinese President Xi Jinping agreed on a 90-day truce at a Dec. 1 meeting in Argentina.

“Talks with China are going very well!,” Trump tweeted on Tuesday, the latest in a series of upbeat messages from him on the negotiations since both his meeting with Xi and the December market turmoil.

Asian stocks and U.S. futures rallied Wednesday amid optimism on the potential for progress in trade talks between Washington and Beijing.
According to people familiar with the matter, Trump’s willingness to cut a deal with Beijing is driven in large part by his desire for markets to rally. He publicly said he’s eager to make a deal that benefits both sides while also stressing that China’s slowing economy and falling stock market signal the country is more desperate than the U.S. for a speedy outcome.

Source: Bloomberg Finance L.P.

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