Trade negotiations with China going well

Trade negotiations with China going well

Hopes for progress in the U.S.

Stocks are jumping early Friday as investors are encouraged by news of trade talks between the US and China and a strong report on the USA job market.

Most overseas markets rose after China's Commerce Ministry said trade talks between the US and China will be held Monday and Tuesday in Beijing. Its stock fell to US$142.19.

The bruising trade war comes as China grapples with a slowing domestic economy. This was a rebound from Thursday's plunge, which was triggered by a massive drop in Apple's stock. US stocks have tumbled over the last three months as investors anxious that the economy might slow down dramatically because of a variety of challenges including the trade dispute and rising interest rates.

Stocks rose even further after Federal Reserve Chairman Jerome Powell said the central bank will be flexible in deciding if and when it raises interest rates. He added that the Fed is open to making changes in the way it shrinks its giant portfolio of bonds, which affects rates on long-term loans such as mortgages. The Dow Jones industrial average soared almost 800 points in the latest twist in a wild three months for markets. The Nasdaq composite jumped 158 points, or 2.4 per cent, to 6,621.

About 90 percent of the stocks on the New York Stock Exchange traded higher. The S&P 500 gained 34 points, or 1.4 percent, to 2,482.

Stocks sank Thursday after

On Thursday the S&P 500 fell 2.5 per cent after Apple said iPhone sales in China are falling and a survey suggested USA factories grew at a weaker pace. Other big exporters including technology and machinery companies also took big losses.

Trump repeated that the U.S. has "taken in billions and billions of dollars in tariffs from China and from others", despite the fact import duties are increasing costs for American businesses and consumers.

Deputy US Trade Representative Jeffrey Gerrish will lead a delegation to meet Chinese counterparts Monday and Tuesday, China's commerce ministry said in a statement.

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Technology, healthcare and industrial firms and banks made strong gains.

Most people in the Western world probably own a smartphone of some kind and, as the devices become commoditised, it's harder for different companies to stand out.

"As much as we all got nervous about Apple yesterday ... this puts a counter to that", he added. Boeing saw a 4 percent drop, while Caterpillar shares fell 3.9 percent. Smaller companies have fallen further than larger ones in the last few months as investors got nervous about how the US economy will perform in 2019 and 2020.

Stocks have whipsawed between huge gains and losses for the last few weeks after their big December plunge.

Stocks are rocketing higher Friday and wiping out much of the previous day's losses after a string of developments eased investors' concerns about the global economy and interest rates. Blais expects WTI will rise to around US$60 per barrel this year once the supply-demand dynamic is brought back into balance.

"We will be patient as we watch to see how the economy evolves", Powell said.

Though the recent sell-off has lowered the S&P 500's valuation, to 14 times expected earnings from 18 times a year earlier, earnings estimates have also been sharply lowered.

Apple plunged 10 per cent to US$142.19 in its worst session since 2013, losing nearly US$75 billion (S$100 billion) in market value.

In Asia, Hong Kong's Hang Seng jumped 2.2%.

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