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Dow Jones: US stocks UP amid signs of China trade war truce – talks ‘moving along nicely’ | City & Business | Finance

The Dow Jones rose 264.98 points, or 1.06 percent, while the Nasdaq jumped by 1.75 percent, leaving the tech-heavy index 5.4 percent up for the last three sessions – its biggest three-day gain since February 2016.

Meanwhile, the trade-sensitive S&P industrial sector rose 1.7 percent.

US stocks took a pummelling earlier this week after reports emerged that President Trump was preparing to announce billions more in tariffs on Chinese-made goods if talks with Xi Jinping scheduled for the end of November do not produce a breakthrough.

The world’s two biggest economies have been engaged in a tit-for-tat trade spat since Mr Trump imposed levies on products imported from China earlier this year.

The US leader has complained about unfair trade practices by China and bemoaned the huge trade surplus the Asian superpower has with the United States.

But he sought to soothe Wall Street today by saying trade talks with Beijing are “moving along nicely” – reviving hopes the two nations can step back from the brink of an all-out trade war.

He wrote in a tweet: “Just had a long and very good conversation with President Xi Jinping of China. We talked about many subjects, with a heavy emphasis on Trade.”

Mr Trump said he plans to meet with his Chinese counterpart when the pair attend the G-20 summit in Argentina.

The former real estate mogul has previously talked up his relationship with Xi Jinping and has referred to him as a friend on multiple occasions, despite the ongoing trade dispute.

Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York, said investors are now beginning to feel more comfortable after consecutive days of gains in the markets.

He said: “Maybe there’s going to be some hope that a trade deal with China will actually come through.

“Now you get a little bit of fear of missing out, mixing in with, ‘I don’t believe this is actually happening’.

“The fear of missing out seems to be on the winning side.”

Adding to the upbeat mood, the latest round of results from companies was mostly positive.

Tomorrow bring the US monthly jobs report for October which will see investors searching for signs of tightening conditions in the labour market.

Around 9.1 billion shares changed hands during trading on US exchanges today, compared with an average of 8.7 billion per day for the last 20 trading days.

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