This article was originally published on ETFTrends.com.
U.S. markets and stock ETFs rallied Friday on growing optimism of progress between the U.S. and China trade delegation, with President Donald Trump providing an upbeat evaluation of trade talks.
The stock markets strengthened on hopes that the two largest economies in the world can reach an accord and that Beijing is willing to compromise with Washington before the White House hikes tariffs to new levels next week, along with imposing additional levies in December, the Wall Street Journal reports.
“Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days,” Trump said in a tweet.
The markets are now waiting on Trump's meeting with Chinese Vice Premier Liu He later Friday.
“The President seems to indicate that there is a possibility of an interim trade deal,” Rick Meckler, a partner at Cherry Lane Investments, told Reuters. “The thought is that there will be some conciliatory moves from both sides, as news earlier in the week had investors worried that these talks might be moving in the wrong direction.”
The shift in sentiment helped revers losses earlier in the week and puts the broader U.S. markets back on track to end a three-week losing streak. Updates on trade have caused wild oscillations in the equity markets as investors reacted to new developments between the countries and tweets from Trump.
“This has been an irritant, I would say, for investors,” John Carey, a portfolio manager at Amundi Pioneer Asset Management, told the WSJ. A deal “would ease at least one source of worry.”
Further adding to the risk-on mood, tensions in Europe appeared calmer on a more positive outlook over the United Kingdom's divorce with the European Union.
For more information on the markets, visit our current affairs category.
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