U.S. urges China to resume trade talks

Today’s article gives an overview of the European and U.S. markets on Friday, together with updates on latest trade talks

European stocks were in recovery mode on Friday after a cautious message from the European Central Bank hit investors’ appetite for risk in the previous session, with traders eyeing a U.S. jobs report and U.S. trade tussles with Mexico for fresh direction. The pan-European STOXX 600 gained 0.9%, with Paris-traded stocks posting a 1.6% gain. Frankfurt-listed shares rose 0.8%, while their peers in London firmed 1%.

U.S. stocks closed higher Friday, following a weaker-than-expected jobs report, which supported the case for the Federal Reserve to ease interest rates in the near future, amid fears that the U.S. economy is decelerating as trade tensions between the U.S. and counterparts Mexico and China persist. The Dow Jones Industrial Average rose 1%, to 25,983.94, while the S&P 500 index gained 1.1%, at 2,873.34. The Nasdaq Composite Index advanced 1.7% to 7,742.1.

Maltese market was closed on Friday due to national holiday – Sette Giugno.

President Donald Trump claimed a victory after Washington and Mexico agreed on measures to stem the flow of Central American migrants into the United States.

The Trump administration began slapping tariffs on imports of Chinese goods nearly a year ago, accusing Beijing of using predatory means to lend Chinese companies an edge in advanced technologies such as artificial intelligence, robotics and electric vehicles.

Those tactics, the U.S. contends, include hacking into U.S. companies' computers to steal trade secrets, forcing foreign companies to hand over sensitive technology in exchange for access to the Chinese market and unfairly subsidizing Chinese tech firms.

The new U.S.-Mexico-Canada deal has been heading toward a vote in Congress and might have been stymied by new tariffs. But the U.S. is still negotiating new trade deals with Japan after withdrawing from a Pacific Rim arrangement, the Obama-era proposed Trans-Pacific Partnership.

America's huge trade deficit with China — a record $379 billion last year — is one factor driving Trump's frustrations with Beijing.

The United States now is imposing 25 percent taxes on $250 billion in Chinese goods. Beijing has counterpunched by targeting $110 billion worth of American products, focusing on farm goods such as soybeans in a deliberate effort to inflict pain on Trump supporters in the U.S. heartland.

The U.S. side has been preparing to expand retaliatory tariff hikes of 25 percent on another $300 billion of Chinese products, and Mnuchin indicated it was prepared to take that step if negotiations with Beijing fail. But he said Trump had not yet made a decision on that, suggesting room for further delays depending on the outcome of his discussion with Xi later this month.

This article was issued by Nadiia Grech, junior trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.