European Shares Seen Up On Trade Deal Hopes
(RTTNews) - European stocks are likely to open higher on Friday as a goodwill gesture by China and White House economic adviser Larry Kudlow's comments on trade helped revive hopes of a U.S.-China deal.
Kudlow said that the two sides are communicating "every single day" and a deal was close though "not done yet."
A spokesperson for China's commerce ministry said that the two countries are holding "in-depth" discussions on the 'phase one' trade deal, and that canceling tariffs is an important condition for reaching an agreement.
China also lifted a nearly five-year ban on imports of U.S. poultry meat, a move that could lead to more than $1 billion in annual shipments to China.
Asian markets traded mostly higher following positive cues on the trade war front. The dollar and riskier trade-exposed currencies found some support while oil rebounded after sliding on Thursday on data showing a larger than expected increase in crude stockpiles last week.
U.S. Treasury yields rose after U.S. Federal Reserve Chair Jerome Powell said the risk of the U.S. economy facing a dramatic bust is remote.
Final inflation and foreign trade figures from euro area are due later in the session, headlining a light day for the European economic news. Across the Atlantic, reports on retail sales and industrial production may sway sentiment.
Overnight, U.S. stocks ended mixed as optimism over a 'phase one' U.S.-China trade deal faded and Cisco Systems issued a bleak outlook.
The S&P 500 inched up 0.1 percent to a fresh record closing high, while the Dow Jones Industrial Average and the Nasdaq Composite index edged down marginally.
European markets ended lower on Thursday as investors reacted to weak data from Asia and Europe.
The pan European Stoxx 600 shed 0.4 percent. The German DAX dropped 0.4 percent, France's CAC 40 index edged down 0.1 percent and the U.K.'s FTSE 100 declined 0.8 percent.
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