admin With many investors worried about further economic damages from the U.S.-China trade war, even a “pause” in that bilateral fight would be a “big relief” to markets, according to an economist.
“Even if we just get a pause, I think that will be very good. I think it will be a big relief for markets, so I think we will get a risk rally,” Robin Brooks, managing director and chief economist at the Institute of International Finance, told CNBC’s “Squawk Box Asia” on Friday.
Stocks in the U.S. were taken on wild ride Thursday following several conflicting headlines related to U.S.-China trade talks this week. Officials from both countries met in Washington on Thursday to discuss trade, which U.S. President Donald Trump said were “going really well.”
Trump is set to meet with Chinese Vice Premier Liu He on Friday.
Many analysts have low expectations for what the two sides could achieve in this week’s talks. Some said the U.S. and China could reach a limited deal for the time being, while others predicted that the next rounds of tariff increases scheduled for Oct. 15 and Dec. 15 would be postponed.
The U.S.-China trade war has dragged on for more than a year, with Washington slapping elevated tariffs on billions of dollars of Chinese goods and Beijing retaliating with levies of its own. That has dampened business sentiment and sparked fears of a global economic slowdown.
President Donald Trump gave an optimistic read on Thursday’s trade talks between the U.S. and China as the world’s two largest economies try to end a damaging trade war.
“I think it’s going really well. I will say, I think it’s going really well,” the president said before he left Washington for a campaign rally in Minnesota. “So we had a very, very good negotiation with China. They’ll be speaking a little bit later, but they’re basically wrapping it up and we’re going to see them tomorrow right here.”
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