Stocks rally on hopes trade war near end

Dow Jones Industrial Average, S&P 500, and Nasdaq futures all traded down ahead of Thursday’s open

Dow Jones Industrial Average, S&P 500, and Nasdaq futures all traded down ahead of Thursday’s open

Chinese Vice Premier Liu He will visit the United States on January 30 and 31 for another round of talks aimed at resolving the trade dispute between the world's two largest economies.

That follows lower-level negotiations held in Beijing last week to resolve the bitter dispute between the world's two largest economies by March 2, when the Trump administration is scheduled to increase tariffs on $200 billion worth of Chinese goods.

Emerging market stocks touched a fresh 1-1/2-month high on Friday as hopes of a resolution to the U.S-China trade dispute lifted investor sentiment, while developing currencies were subdued as the USA dollar clung onto recent gains. The United States wants her extradited on charges that she lied to a bank about dealings with Iran.

Chinese negotiators were not keen on the idea of regular compliance checks, the source said, but the USA proposal "didn't derail negotiations".

USA stocks rose as Wall Street became more optimistic about potential progress in trade negotiations between Washington and its key trading partners while digesting some key economic data.

Canada's arrest of Huawei's chief financial officer Meng Wanzhou, who is the daughter of the company founder, at the request of the United States has already infuriated Beijing.

China detained two Canadians shortly after her arrest in what Western analysts see as an attempt to pressure Canada to release her.

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It was also a first piece of silverware for Ronaldo since he swapped Real Madrid for Turin last summer. Cristiano Ronaldo scored the only goal of the match to win his first trophy with the Italian team.

The U.S. has long complained about Chinese trade practices. USA crude was last up $1.75, or up 3.36%, at $53.82 per barrel.

'The story was probably not as interesting as the headlines suggested, as the story states that the proposal comes from treasury secretary Steven Mnuchin (a China dove), while the USA trade representative Robert Lighthizer (China hawk) opposes the idea, ' strategists at Danske Bank wrote in a note to clients. The Trump Sword hangs high, but perhaps the 2 sides can find a way to save face for the Chinese government.

According to Bloomberg News, Chinese officials made the offer during negotiations in Beijing earlier in the month. Its trade surplus is a product of the country's predatory mercantilism.

Stronger-than-expected U.S. industrial production numbers also helped lift the greenback.

Cardillo said growing enthusiasm over trade talks was adding to a potential "January effect", when stocks that were sold in December for year-end tax purposes bounced back.

Without a resolution, punitive US duty rates on $200 billion in Chinese goods are due to rise to 25 percent from 10 percent on March 2. -China trade row remains a key market theme in 2019. It was last up nearly half a percent. For investors, the encouraging news on trade builds on recent positive signs for the US economy and indications from the Federal Reserve that it will be patient when considering future interest rate hikes.

And the cost of producing goods in China's factories slowed sharply in December, a sign demand remains weak, while consumer inflation also flagged.

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