Markets

Oil prices rise over 2 percent on trade talk optimism

Oil prices rise over 2 percent on trade talk optimism

President Trump said the talks have been going well and China has shown it is will to work with the US on some issues by purchasing soybeans, for example, and lowering auto tariffs.

Oil prices rose more than 2 percent on Tuesday, supported by hopes that crude demand may rise more quickly if talks between U.S. and Chinese officials resolve the trade dispute between the world's two biggest economies, Trend reports citing Reuters.

The statement came as trade talks between China and the United States were under way in Beijing, the first round of face-to-face discussions since both sides agreed to a 90-day truce in a trade war that has roiled global markets. Ross told CNBC the talks were being held with appropriate-level staff and would help determine how the administration moves forward.

President Donald Trump has expressed hope for a bilateral trade deal with China while pointing to years of hundreds of millions in trade deficit between the two nations.

Meanwhile, confirming the conclusion of the trade talks, China's foreign ministry spokesman Lu Kang told a media briefing that "the extension of the talks indicates that both sides are serious about this consultation".

Some observers argue the president is using the threat of tariffs to force China into negotiations, and that a deal can be done. The US goods trade deficit with China was $375.6 billion in 2017.

The editor-in-chief of the Global Times, a state-run Chinese newspaper known for its nationalist leanings, said on Twitter around 4 pm in Beijing that he'd heard the two sides were still consulting on the wording of coordinated statements.

El Paso, Texas-based Helen of Troy Ltd, a maker of consumer products from OXO kitchen utensils to Braun shavers, cut its sales and gross margin outlooks on Tuesday laid some of the blame on U.S. tariffs on Chinese goods, which make up 70 percent of the company's cost of products sold. 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.




Signals from the latest round of talks were upbeat, the Post report said.

The results of the talks would be analysed at a separate meeting between United States trade representative Robert Lighthizer and Chinese Vice-Premier Liu He.

-China trade talks and yet China sent in its top economics adviser Chinese Vice Premier Liu He.

With cooling economic growth raising the urgency for a settlement, this week's talks went ahead despite tension over the arrest of a Chinese tech executive in Canada on USA charges related to possible violations of trade sanctions against Iran.

The temporary ceasefire came after the two sides imposed import duties on more than US$300 billion of each other's goods.

The U.S. delegation was led by Deputy U.S. Trade Representative Jeffrey Gerrish and accompanied by senior officials from the White House, U.S. Trade Representative (USTR), and the U.S. Departments of Agriculture, Commerce, Energy, and Treasury, according to the USTR.

The Trump administration also wants Beijing to buy more American goods to narrow a yawning trade gap and allow foreign players better access to the Chinese market.

Even if a trade agreement is reached soon, analysts say it would be no panacea for China's economy, which is expected to continue decelerating in coming months.