Asian markets soar on hopes of end to US-China trade war

Given the speed of Trump's turnaround, Boltansky said he also believed the sudden surge in Trump's optimism was possibly a political play.

The two countries have been locked in an escalating trade war this year, with each side imposing tariffs on hundreds of billions of dollars' worth of imports from the other.

Stock markets in Europe and Asia rallied this morning after a phone call between President Trump and President Xi raised hopes of a thaw in trade tensions.

"We're doing a normal, routine run-through of things we already put together and normal preparation", Kudlow said on CNBC Friday. "China does not want to see this", he said, according to Xinhua.

The telephone conversation on Thursday was Trump and Xi's first publicly disclosed call in six months. "But it will be a good deal for the United States". -China trade talks can not resume until Beijing outlines specific actions it would take to meet US demands for sweeping changes to policies on technology transfers, industrial subsidies and market access. "We don't know what the tariff rate might be", he said.

Trump said he will have dinner with President Xi Jinping of China at the November 30-December 1 summit of industrial and emerging market nations.

"Frankly, the principal culprit is China", he said.

"He wants to do it", Trump said of Xi.

His administration has demanded that Beijing make sweeping changes to its policies on intellectual property protections, technology transfers, industrial subsidies and domestic market access, along with steps to reduce a $375 billion US goods trade deficit with China.

Isaac Boltansky, a policy analyst at the research and trading firm Compass Point, told Business Insider that the complexity of the issues the USA and China are discussing - intellectual property rights, Chinese laws restricting how U.S. companies can operate in the country, and more - make a deal hard.

The last round of trade talks with China ended in August with no concrete steps toward reaching a deal. He backed out on a deal congressional Democrats said they struck with Trump to provide legal status to young undocumented immigrants.

Team Trump on Friday threw cold water on reports that the administration was close to cutting a trade deal with China.

"We are not on the cusp of a deal", Kudlow said.

Trump's posture toward China has been closely watched by investors, who are looking for the possibility of tensions cooling. Trump said trade talks were "moving along nicely" and that meetings were "being scheduled" at the G20 summit in Buenos Aires.

In comments in state media, Xi said he hoped China and the United States would be able to promote a steady and healthy relationship, and that he was willing to meet Trump in Argentina.

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