Washington and Beijing have agreed to restart trade talks. US President Donald Trump has offered concessions including no new tariffs and an easing of restrictions on tech company Huawei, while China agreed to make new purchases of US farm products and kick start negotiations once more.
The move has had a positive reaction from financial markets, with the Nikkei up 2.1 per cent in the Asian session and Chinese equities up by 2 per cent.
Trump tweeted after his meeting with Chinese President Xi Jinping that talks were “far better than expected” and they are “right back on track”. He also said, “We’re holding back on tariffs and they’re going to buy farm products.”
Meanwhile, oil raced higher to $60 a barrel after Russian President Vladimir Putin struck a deal with Saudi Crown Prince Mohammed bin Salman at the G20 summit to extend output cuts for the rest of 2019 and possibly into 2020.
In domestic news, the UK seems to be on course for a hard Brexit confrontation with Brussels, after the two contenders for prime minister, Boris Johnson and Jeremy Hunt last night revealed they were pulling in negotiating teams to look at replacing Theresa May’s failed deal with a free-trade agreement.
The news came alongside data from the Confederation of the British Industry (CBI) that showed Britain’s private sector had its worst three months in seven years, as the Brexit impasse and poor weather hit economic growth.
Today, Germany has just released unemployment data showing the rate fell slightly in June to 2.281 million, only marginally better compared to May. US ISM manufacturing data is due later in the day.
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