Markets soar after Trump says China wants to talk about trade

Beijing has yet to confirm that there are any negotiations pending.
Image:  Donald Trump Xi Jinping
President Donald Trump and China's President Xi Jinping meet business leaders at the Great Hall of the People in Beijing, China, on Nov. 9, 2017.Damir Sagolj / Reuters

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By Lucy Bayly

Wall Street soared Monday morning, after President Donald Trump said China wants to make a deal on trade.

The Dow Jones Industrial Average opened with a gain of almost 300 points, the S&P 500 was up by 0.8 percent, and the Nasdaq Composite jumped by 1 percent.

"We are probably in a much better position now than any time in the negotiations," Trump said at the G-7 economic summit in France.

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“They want to make a deal,” Trump told reporters Monday during a meeting with Egyptian President Abdel-Fattah el-Sissi. “That’s a great thing.”

However, Beijing has yet to confirm Trump's assertions.

“I haven’t heard about this,” Geng Shuang, a spokesperson for the Chinese Foreign Ministry, said.

Markets were recovering from a whiplash weekend, as investors attempted to follow the trajectory of the monthslong trade war between the world's two largest economies.

The escalated rhetoric began on Friday after China announced it would impose retaliatory tariffs on $75 billion of imported U.S. goods. Trump then tweeted that Chinese President Xi Jinping was an "enemy."

Wall Street tumbled all day Friday, with the mounting tensions finally pulling the Dow Jones down by 620 points at market close. Trump then announced he would raise tariffs on $250 billion worth of Chinese goods from 25 percent to 30 percent.

By Monday morning, markets had righted themselves, with crude oil, the U.S. dollar, and government bonds also rising on renewed hopes the trade war could finally see a resolution.

With regard to settling the squabble, the Chinese "understand this is the right thing to do and I have great respect for it. This is a very positive development for the world,” Trump said.