<a href="https://www.wionews.com/business-economy/oil-drops-as-us-inventory-build-record-output-rekindles-supply-worries-264998">Oil prices </a>tumbled Friday on expectations OPEC next week won't take aggressive action to boost oil prices, while global equities pulled back on trade war worries.&nbsp;

Both the US and European benchmark contracts for oil fell ahead of the December 5 meeting of the Organization of the Petroleum Exporting Countries in Vienna where analysts expect the cartel to stick with a current production agreement, but not to deepen cuts.

"The market may be disappointed that OPEC is not entertaining additional production cuts," said Andy Lipow of Lipow Oil Associates, adding that the group is "in a difficult position" given weak demand and higher output in the US and other regions.

Equity markets ended lower following a lackluster session. US bourses pulled back from records in a holiday-shortened session with low trading volumes.

Analysts said stocks were dragged lower by increased US-China trade friction as Beijing threatened unspecified retaliation after President Donald Trump signed into law legislation supporting Hong Kong pro-democracy protesters.

The market feels "a little angst" on US-China trade relations, although the modest drop suggests few fears that a preliminary US-China trade deal will fall apart, said Briefing.com analyst Patrick O'Hare, who added that low trading volume sharpened the decline.

The pullback also came as the holiday shopping season got started in earnest with the "Black Friday" promotions after Thanksgiving.&nbsp;

Walmart rose slightly, but most other leading US retailers fell, including Target and Amazon, as consumers shift ever more of their dollars to e-commerce from traditional stores.&nbsp;

Elsewhere, London underperformed its eurozone peers in response to a stronger pound which was boosted by expectations that Britain's ruling Conservatives will win next month's general election.

This would likely allow Prime Minister Boris Johnson to push through his Brexit agreement and avoid a no-deal divorce from the European Union.

On the corporate front, shares in Daimler dropped 1.5 per cent. on the Frankfurt bourse as the German luxury automaker said it would slash at least 10,000 jobs worldwide in a major cost-cutting drive to help finance the switch to electric cars.

Shares in UK online supermarket Ocado surged after the company announced a deal to provide artificial intelligence (AI) capabilities to Japanese retail giant Aeon.

Key figures around 1900 GMT&nbsp;

New York - Dow: DOWN 0.4 percent at 28,051.41 (close)

New York - S&amp;P 500: DOWN 0.4 percent at 3,140.98 (close)

New York - Nasdaq: DOWN 0.5 percent at 8,665.47 (close)

London - FTSE 100: DOWN 0.9 percent at 7,346.53 (close)

Frankfurt - DAX 30: DOWN 0.1 percent at 13,236.38 (close)

Paris - CAC 40: DOWN 0.1 percent at 5,905.17 (close)

EURO STOXX 50: FLAT at 3,703.58 (close)

Tokyo - Nikkei 225: DOWN 0.5 percent at 23,293.91 (close)

Hong Kong - Hang Seng: DOWN 2.0 percent at 26,346.49 (close)

Shanghai - Composite: DOWN 0.6 percent at 2,871.98 (close)

Euro/dollar: UP at $1.1017 from $1.1009&nbsp;

Pound/dollar: UP at $1.2933 from $1.2912

Euro/pound: DOWN at 85.18 pence from 85.27

Dollar/yen: DOWN at 109.47 yen from 109.51

Brent North Sea crude: DOWN 2.3 percent at $62.43 per barrel

West Texas Intermediate: DOWN 5.1 percent at $55.17 per barrel

Oil prices tumbled Friday on expectations OPEC next week won't take aggressive action to boost oil prices, while global equities pulled back on trade war worries.

Oil prices tumbled Friday on expectations OPEC next week won't take aggressive action to boost oil prices, while global equities pulled back on trade war worries. Both the US and European benchmark contracts for oil fell ahead of the December 5 meeting of the Organization of the Petroleum Exporting Countries in Vienna where analysts expect the cartel to stick with a current production agreement, but not to deepen cuts. "The market may be disappointed that OPEC is not entertaining additional production cuts," said Andy Lipow of Lipow Oil Associates, adding that the group is "in a difficult position" given weak demand and higher output in the US and other regions. Equity markets ended lower following a lackluster session. US bourses pulled back from records in a holiday-shortened session with low trading volumes. Analysts said stocks were dragged lower by increased US-China trade friction as Beijing threatened unspecified retaliation after President Donald Trump signed into law legislation supporting Hong Kong pro-democracy protesters. The market feels "a little angst" on US-China trade relations, although the modest drop suggests few fears that a preliminary US-China trade deal will fall apart, said Briefing.com analyst Patrick O'Hare, who added that low trading volume sharpened the decline. The pullback also came as the holiday shopping season got started in earnest with the "Black Friday" promotions after Thanksgiving. Walmart rose slightly, but most other leading US retailers fell, including Target and Amazon, as consumers shift ever more of their dollars to e-commerce from traditional stores. Elsewhere, London underperformed its eurozone peers in response to a stronger pound which was boosted by expectations that Britain's ruling Conservatives will win next month's general election. This would likely allow Prime Minister Boris Johnson to push through his Brexit agreement and avoid a no-deal divorce from the European Union. On the corporate front, shares in Daimler dropped 1.5 per cent. on the Frankfurt bourse as the German luxury automaker said it would slash at least 10,000 jobs worldwide in a major cost-cutting drive to help finance the switch to electric cars. Shares in UK online supermarket Ocado surged after the company announced a deal to provide artificial intelligence (AI) capabilities to Japanese retail giant Aeon. Key figures around 1900 GMT New York - Dow: DOWN 0.4 percent at 28,051.41 (close) New York - S&P 500: DOWN 0.4 percent at 3,140.98 (close) New York - Nasdaq: DOWN 0.5 percent at 8,665.47 (close) London - FTSE 100: DOWN 0.9 percent at 7,346.53 (close) Frankfurt - DAX 30: DOWN 0.1 percent at 13,236.38 (close) Paris - CAC 40: DOWN 0.1 percent at 5,905.17 (close) EURO STOXX 50: FLAT at 3,703.58 (close) Tokyo - Nikkei 225: DOWN 0.5 percent at 23,293.91 (close) Hong Kong - Hang Seng: DOWN 2.0 percent at 26,346.49 (close) Shanghai - Composite: DOWN 0.6 percent at 2,871.98 (close) Euro/dollar: UP at $1.1017 from $1.1009 Pound/dollar: UP at $1.2933 from $1.2912 Euro/pound: DOWN at 85.18 pence from 85.27 Dollar/yen: DOWN at 109.47 yen from 109.51 Brent North Sea crude: DOWN 2.3 percent at $62.43 per barrel West Texas Intermediate: DOWN 5.1 percent at $55.17 per barrel

Oil prices tumble ahead of OPEC meeting, global stocks fall

China will strive to reach an initial <a href="https://www.wionews.com/world/united-states-china-trade-deal-may-not-be-signed-this-year-263497">trade agreement </a>with the United States as both sides keep communication channels open, the Chinese commerce ministry said on Thursday, in an attempt to allay fears talks might be unraveling.

China is willing to work with the United States to resolve each other's core concerns on the basis of equality and mutual respect, and will try hard to reach a "phase one" deal, Gao Feng, spokesman at the ministry, told reporters.

"This is in line with the interests of both China and the <a href="https://www.wionews.com/business-economy/donald-trump-says-us-is-still-talking-to-china-on-trade-263477">United States</a>, and of the world," Gao said.

Economists warn that the prolonged trade dispute between China and the United States is escalating risks to the global economy by disrupting supply chains, discouraging investment and dampening business confidence.

Completion of a phase one deal could slide into next year, trade experts and people close to the White House told Reuters previously, as Beijing presses for more extensive tariff rollbacks and the US&nbsp;administration counters with heightened demands of its own.

Officials from Beijing had suggested that Chinese President Xi Jinping and US&nbsp;counterpart Donald Trump might sign a deal in early December.

Some experts said the next date to watch was Dec&nbsp;15, when US&nbsp;tariffs on about $156 billion in Chinese goods are set to take effect, including holiday gift items such as electronics and Christmas decorations.

In a dinner speech in Beijing on Wednesday, Chinese Vice Premier Liu He said he was "cautiously optimistic" on a phase one deal, Bloomberg News said, citing people who attended the event ahead of a forum organised by Bloomberg LP.

Liu, China's chief negotiator at the trade talks, separately told one of the attendees that he was "confused" about the US&nbsp;demands, but was confident the first phase of a deal could be completed nevertheless, Bloomberg added.

Gao, when asked about sticking points and whether they were related to Washington's demand for China to buy more US&nbsp;farm goods and the tariff rollbacks, said he did not have more information to disclose beyond the fact that both parties would continue to communicate, and "outside rumours are not accurate."

A former Chinese commerce minister told Reuters that both sides should return to the time when the trade war first started.

"We should return to the point of origin and cancel all tariffs," Wei Jianguo said on the sidelines of the Bloomberg forum.

Wei said he was hopeful for a phase one pact, in light of the pressure on both the US&nbsp;and Chinese economies as the trade war dragged on.

"Now, Trump himself is cognizant about the needs of the (upcoming US) elections, and the US&nbsp;economy has also suffered great losses," he said.

"Under such circumstances, it is entirely possible to reach a phased agreement."

Hong Kong issue

A fresh row between Washington and Beijing over US&nbsp;legislation on Hong Kong has also threatened to undermine their trade talks and delay a phase one deal that investors had initially hoped to be signed by now.

The US&nbsp;House of Representatives on Wednesday passed two bills to back protesters in Hong Kong and send a warning to China about human rights, with Trump expected to sign them into law.

The measure, which has angered Beijing, would require the State Department to certify at least once a year that Hong Kong retains enough autonomy to qualify for the special US&nbsp;trading consideration that helped it become a world financial centre.

It also would provide for sanctions against officials responsible for human rights violations in the Chinese-ruled city.

"We urge the US&nbsp;side to cease this activity, stop before it's too late and take measures to prevent these measures from becoming law, stop meddling in Hong Kong's affairs and China's affairs," said Geng Shuang, spokesman at the Chinese foreign ministry.

"If they must insist on going down this wrong path China will take strong counter-measures," Geng told reporters at a regular briefing on Thursday.

Demonstrators have protested for months in the streets of Hong Kong, amid increasing violence and fears that Beijing will ramp up its response to stop the civil disobedience.

Trump has 10 days, excluding Sundays, to sign a bill passed by Congress, unless he opts to use his veto.

On Thursday, the ruling Chinese Communist Party’s main newspaper, the People's Daily, urged the United States to "rein in the horse at the edge of the precipice" and stop interfering in Hong Kong matters and China’s internal affairs.

"If the US&nbsp;side obstinately clings to its course, the Chinese side will inevitably adopt forceful measures to take resolute revenge, and all consequences will be borne by the United States," it said in a front-page editorial.

China will strive to reach an initial trade agreement with the United States as both sides keep communication channels open, the Chinese commerce ministry said on Thursday, in an attempt to allay fears talks might be unraveling.

China will strive to reach an initial trade agreement with the United States as both sides keep communication channels open, the Chinese commerce ministry said on Thursday, in an attempt to allay fears talks might be unraveling. China is willing to work with the United States to resolve each other's core concerns on the basis of equality and mutual respect, and will try hard to reach a "phase one" deal, Gao Feng, spokesman at the ministry, told reporters. "This is in line with the interests of both China and the United States, and of the world," Gao said. Economists warn that the prolonged trade dispute between China and the United States is escalating risks to the global economy by disrupting supply chains, discouraging investment and dampening business confidence. Completion of a phase one deal could slide into next year, trade experts and people close to the White House told Reuters previously, as Beijing presses for more extensive tariff rollbacks and the US administration counters with heightened demands of its own. Officials from Beijing had suggested that Chinese President Xi Jinping and US counterpart Donald Trump might sign a deal in early December. Some experts said the next date to watch was Dec 15, when US tariffs on about $156 billion in Chinese goods are set to take effect, including holiday gift items such as electronics and Christmas decorations. In a dinner speech in Beijing on Wednesday, Chinese Vice Premier Liu He said he was "cautiously optimistic" on a phase one deal, Bloomberg News said, citing people who attended the event ahead of a forum organised by Bloomberg LP. Liu, China's chief negotiator at the trade talks, separately told one of the attendees that he was "confused" about the US demands, but was confident the first phase of a deal could be completed nevertheless, Bloomberg added. Gao, when asked about sticking points and whether they were related to Washington's demand for China to buy more US farm goods and the tariff rollbacks, said he did not have more information to disclose beyond the fact that both parties would continue to communicate, and "outside rumours are not accurate." A former Chinese commerce minister told Reuters that both sides should return to the time when the trade war first started. "We should return to the point of origin and cancel all tariffs," Wei Jianguo said on the sidelines of the Bloomberg forum. Wei said he was hopeful for a phase one pact, in light of the pressure on both the US and Chinese economies as the trade war dragged on. "Now, Trump himself is cognizant about the needs of the (upcoming US) elections, and the US economy has also suffered great losses," he said. "Under such circumstances, it is entirely possible to reach a phased agreement." Hong Kong issue A fresh row between Washington and Beijing over US legislation on Hong Kong has also threatened to undermine their trade talks and delay a phase one deal that investors had initially hoped to be signed by now. The US House of Representatives on Wednesday passed two bills to back protesters in Hong Kong and send a warning to China about human rights, with Trump expected to sign them into law. The measure, which has angered Beijing, would require the State Department to certify at least once a year that Hong Kong retains enough autonomy to qualify for the special US trading consideration that helped it become a world financial centre. It also would provide for sanctions against officials responsible for human rights violations in the Chinese-ruled city. "We urge the US side to cease this activity, stop before it's too late and take measures to prevent these measures from becoming law, stop meddling in Hong Kong's affairs and China's affairs," said Geng Shuang, spokesman at the Chinese foreign ministry. "If they must insist on going down this wrong path China will take strong counter-measures," Geng told reporters at a regular briefing on Thursday. Demonstrators have protested for months in the streets of Hong Kong, amid increasing violence and fears that Beijing will ramp up its response to stop the civil disobedience. Trump has 10 days, excluding Sundays, to sign a bill passed by Congress, unless he opts to use his veto. On Thursday, the ruling Chinese Communist Party’s main newspaper, the People's Daily, urged the United States to "rein in the horse at the edge of the precipice" and stop interfering in Hong Kong matters and China’s internal affairs. "If the US side obstinately clings to its course, the Chinese side will inevitably adopt forceful measures to take resolute revenge, and all consequences will be borne by the United States," it said in a front-page editorial.

Will strive to reach 'phase one' trade deal with US: China

China's exports suffered their third month of decline in October, and while the drop was less than expected there were warnings Friday of more pain to come as the <a href="https://www.wionews.com/world/china-us-agree-tariff-rollback-if-phase-one-trade-deal-is-completed-260641">US trade war </a>rumbles on.

While tensions between the world's top two economies are beginning to ease, Beijing is struggling to get the engines of growth firing on all cylinders as demand for its goods around the world tails off.

In the latest sign of weakness, official data showed overseas shipments fell 0.9 per cent on-year last month, though that is much slower than the 3.2 per cent drop seen in September and much better than forecasts.

Economists surveyed by Bloomberg had tipped a 3.9 per cent plunge.

Imports sank for the sixth straight month in October, dropping 6.4 per cent, though that was also an improvement on the previous month and beat estimates.

China's trade surplus with the United States, a key point of anger in the White House, increased to $26.42 billion.

The economic powerhouses have been embroiled in a bruising trade war for more than a year, with punitive tariffs slapped on two-way trade worth hundreds of billions of dollars.

But markets have been buoyed in recent weeks by expectations the row, which has dragged on the global economy, could be easing as China and the US finalise a mini trade deal that is part of a wider agreement.

Hopes for an end to the stand-off were boosted Thursday when China said the two sides have agreed a plan to remove tariffs imposed on goods in stages if the phase one preliminary pact on which they are working is completed.

Ken Cheung Kin Tai, a senior strategist at Mizuho Bank said that the "less worrying trade figures should help suppress fears of weakening fourth-quarter China growth amid the trade war".

China's economic growth slowed to six percent in the third quarter, the weakest rate in 27 years.

However, analysts warned the subdued outlook worldwide will continue to weigh on trade.

"Slowing global growth and the uncertainty surrounding the US-China trade tensions will continue to dampen trade prospects in China and demand for imports," said Tommy Wu of Oxford Economics.

He added that further policy easing and support from the government could be expected to stabilise growth.

"The contraction in both exports and imports eased more than expected last month," said Martin Rasmussen, China economist at Capital Economics.

"But even if the 'phase one' US-China trade deal crosses the finish line, it is unlikely to alleviate the main headwinds facing exporters and outbound shipments look set to remain weak in the coming months."

China's exports suffered their third month of decline in October, and while the drop was less than expected there were warnings Friday of more pain to come as the US trade war rumbles on.

China's exports suffered their third month of decline in October, and while the drop was less than expected there were warnings Friday of more pain to come as the US trade war rumbles on. While tensions between the world's top two economies are beginning to ease, Beijing is struggling to get the engines of growth firing on all cylinders as demand for its goods around the world tails off. In the latest sign of weakness, official data showed overseas shipments fell 0.9 per cent on-year last month, though that is much slower than the 3.2 per cent drop seen in September and much better than forecasts. Economists surveyed by Bloomberg had tipped a 3.9 per cent plunge. Imports sank for the sixth straight month in October, dropping 6.4 per cent, though that was also an improvement on the previous month and beat estimates. China's trade surplus with the United States, a key point of anger in the White House, increased to $26.42 billion. The economic powerhouses have been embroiled in a bruising trade war for more than a year, with punitive tariffs slapped on two-way trade worth hundreds of billions of dollars. But markets have been buoyed in recent weeks by expectations the row, which has dragged on the global economy, could be easing as China and the US finalise a mini trade deal that is part of a wider agreement. Hopes for an end to the stand-off were boosted Thursday when China said the two sides have agreed a plan to remove tariffs imposed on goods in stages if the phase one preliminary pact on which they are working is completed. Ken Cheung Kin Tai, a senior strategist at Mizuho Bank said that the "less worrying trade figures should help suppress fears of weakening fourth-quarter China growth amid the trade war". China's economic growth slowed to six percent in the third quarter, the weakest rate in 27 years. However, analysts warned the subdued outlook worldwide will continue to weigh on trade. "Slowing global growth and the uncertainty surrounding the US-China trade tensions will continue to dampen trade prospects in China and demand for imports," said Tommy Wu of Oxford Economics. He added that further policy easing and support from the government could be expected to stabilise growth. "The contraction in both exports and imports eased more than expected last month," said Martin Rasmussen, China economist at Capital Economics. "But even if the 'phase one' US-China trade deal crosses the finish line, it is unlikely to alleviate the main headwinds facing exporters and outbound shipments look set to remain weak in the coming months."

China export drop beats forecasts in October but more pain tipped

Asian shares napped near multi-month peaks on Thursday while bonds eked out a bounce as reports of delays in sealing a preliminary Sino-US&nbsp;trade deal left investors frustrated at the lack of concrete progress.

In early European trades, the pan-region Euro Stoxx 50 futures&nbsp;were up slightly while those for German DAX were flat. London's FTSE futures&nbsp;rose 0.2 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan&nbsp;dipped a slight 0.2 per cent, just off a six-month highs hit earlier in the week.

Japan's Nikkei dithered either side of flat in very quiet trade, having touched a 13-month top on Wednesday. South Korean stocks eased 0.15 per cent&nbsp;after hitting their highest since May, while Shanghai blue chips lost 0.08 per cent.

E-Mini futures for the S&amp;P 500 eased 0.1 per cent.

Reuters reported on Wednesday a meeting between US&nbsp;President Donald Trump and Chinese President Xi Jinping to sign an interim trade deal could be <a href="https://www.wionews.com/world/us-china-trade-deal-signing-could-be-delayed-to-december-london-a-possible-venue-report-260422">delayed until December</a> as discussions continue over terms and venue.

Among various suggestions was to sign a deal after a scheduled NATO meeting in early December.

"One could take the view that by not committing to meet the original deadline it gives more time for a somewhat more comprehensive agreement to be thrashed out," said Ray Attrill, head of FX strategy at National Australia Bank.

"But markets have understandably jumped the other way, exhibiting a slight loss of confidence that anything more substantial than an agreement not to further lift tariffs, in return for some increase in US agricultural purchases, can be agreed by way of an initial deal."

Wall Street was underwhelmed by the news and the Dow ended Wednesday all but flat, while the S&amp;P 500&nbsp;gained 0.07 per cent&nbsp;and the Nasdaq&nbsp;dropped 0.29 per cent.

HP Inc&nbsp;rose over 6 per cent&nbsp;after Reuters reported US&nbsp;printer maker Xerox Holdings Corp&nbsp;has made a roughly $33 billion cash-and-stock offer for the computer group.

The pause in the risk rally helped bonds recoup a little of their recent losses. Yields on benchmark US&nbsp;10-year notes&nbsp;fell back to 1.81 per cent&nbsp;from a two-month top of 1.87 per cent.

That, in turn, restrained the dollar, which eased to 108.74 yen&nbsp;from a weekly high of 109.24. The dollar was steady on a basket of currencies at 97.965.

The euro was struggling to sustain any bounce at $1.1061, perilously close to chart support at $1.1060.

Spot gold was little changed at $1,490.38 per ounce&nbsp;and well within recent tight trading ranges.

Oil prices nursed losses after taking a hit from a surprisingly large build in US&nbsp;crude inventories.

US&nbsp;crude&nbsp;was 6 cents lower at $56.29 a barrel, while Brent crude&nbsp;slipped 7 cents to $61.67.

Asian shares napped near multi-month peaks on Thursday while bonds eked out a bounce as reports of delays in sealing a preliminary Sino-US trade deal left investors frustrated at the lack of concrete progress.

Asian shares napped near multi-month peaks on Thursday while bonds eked out a bounce as reports of delays in sealing a preliminary Sino-US trade deal left investors frustrated at the lack of concrete progress. In early European trades, the pan-region Euro Stoxx 50 futures were up slightly while those for German DAX were flat. London's FTSE futures rose 0.2 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan dipped a slight 0.2 per cent, just off a six-month highs hit earlier in the week. Japan's Nikkei dithered either side of flat in very quiet trade, having touched a 13-month top on Wednesday. South Korean stocks eased 0.15 per cent after hitting their highest since May, while Shanghai blue chips lost 0.08 per cent. E-Mini futures for the S&P 500 eased 0.1 per cent. Reuters reported on Wednesday a meeting between US President Donald Trump and Chinese President Xi Jinping to sign an interim trade deal could be delayed until December as discussions continue over terms and venue. Among various suggestions was to sign a deal after a scheduled NATO meeting in early December. "One could take the view that by not committing to meet the original deadline it gives more time for a somewhat more comprehensive agreement to be thrashed out," said Ray Attrill, head of FX strategy at National Australia Bank. "But markets have understandably jumped the other way, exhibiting a slight loss of confidence that anything more substantial than an agreement not to further lift tariffs, in return for some increase in US agricultural purchases, can be agreed by way of an initial deal." Wall Street was underwhelmed by the news and the Dow ended Wednesday all but flat, while the S&P 500 gained 0.07 per cent and the Nasdaq dropped 0.29 per cent. HP Inc rose over 6 per cent after Reuters reported US printer maker Xerox Holdings Corp has made a roughly $33 billion cash-and-stock offer for the computer group. The pause in the risk rally helped bonds recoup a little of their recent losses. Yields on benchmark US 10-year notes fell back to 1.81 per cent from a two-month top of 1.87 per cent. That, in turn, restrained the dollar, which eased to 108.74 yen from a weekly high of 109.24. The dollar was steady on a basket of currencies at 97.965. The euro was struggling to sustain any bounce at $1.1061, perilously close to chart support at $1.1060. Spot gold was little changed at $1,490.38 per ounce and well within recent tight trading ranges. Oil prices nursed losses after taking a hit from a surprisingly large build in US crude inventories. US crude was 6 cents lower at $56.29 a barrel, while Brent crude slipped 7 cents to $61.67.

Asia stocks frustrated as trade doubts resurface

Asian shares surged on Monday, with a broad regional gauge hitting more than 14-week highs, as growing optimism over US-China trade talks and upbeat US&nbsp;job data boosted global investors' appetite for riskier assets.

MSCI's broadest index of Asia-Pacific shares outside Japan jumped 1.08%, touching its highest level since July 24, and on track for its biggest one-day gain since Oct. 11.

Equity markets in Europe were set to follow Asia higher, with pan-region Euro Stoxx 50 futures up 0.53%, German DAX futures 0.49% higher and FTSE futures&nbsp;rising 0.41% in early trading.

In Asia, Hong Kong's Hang Seng rose 1.36%, and Seoul's Kospi added 1.43%. In mainland China, blue chips were up 0.72%, and Australian shares were 0.27% higher.

Markets in Japan were closed for a holiday.

The United States and China both said on Friday that they had made progress in talks aimed at defusing their protracted trade war, and US officials said a deal could be signed this month.

But in a note to clients, analysts at National Australia Bank sounded a note of caution.

"As much as the US-China trade updates continue to point to a Phase 1 deal looking like a certainty, the contentious issues on whether the US&nbsp;will cancel the planned December tariffs and remove some of the current tariffs in line with China's demands remains an unknown and if the issue is not resolved then a deal could easily collapse," they said.

In comments on Friday, White House economic adviser Larry Kudlow said tariffs set to kick in on Dec. 15, which would cover Chinese imports such as laptops, toys and electronics, would remain on the table, and the decision whether to cancel them would be made by US&nbsp;President Donald Trump.

Any lingering uncertainty over the outlook for trade talks was not enough to keep the S&amp;P 500 from gaining 0.97% and the Nasdaq rising 1.13% to fresh record closing highs on Friday.

The Dow Jones Industrial Average&nbsp;rose 1.11%.

On Monday, U.S. S&amp;P 500 e-mini stock futures were up 0.2% at 3,067.8.

US job growth slowed less than expected in October and hiring in the prior two months was stronger than previously estimated, data from the Labor Department showed on Friday.

Those numbers followed a private survey of manufacturers in China that showed better-than-expected factory activity in October.

Rob Carnell, Asia-Pacific chief economist at ING in Singapore, said some market optimism was "probably justified" in the wake of the positive data.

"Everybody had been looking for a much worse number and it didn't materialise, so some bounce from that was entirely plausible and reasonable."

But he added that continued uncertainty over trade talks and less room for monetary easing by global central banks made for a murky outlook.

"It's difficult to see why you wouldn't be at least thinking, there is a 'good profit-taking opportunity right now' and positioning for a slightly worse outcome," he said.

While cash treasuries were not trading due to the Japanese market holiday, US&nbsp;10-year Treasury futures&nbsp;were down 0.11% amid the broadly bullish market mood.

The implied yield on the 10-year Treasury futures contract expiring in December&nbsp;was 1.65%.

Oil prices, which had surged on hopes for a US-China trade deal, pulled back on Monday. Global benchmark Brent crude was off 0.57% at $61.34 per barrel and US&nbsp;West Texas Intermediate crude was 0.55% lower at $55.89.

In the currency market, the dollar was up 0.06% against the yen at 108.23, and the euro was up 0.02% to buy $1.1167.

The dollar index, which tracks the greenback against a basket of six major rivals, was down 0.02% at 97.222.

Those small moves contrasted with a 1.42% jump in the South African rand against the dollar. The currency rallied on relief that Moody's maintained South Africa's investment-grade rating on Friday, though the agency cut its outlook on the rating to "negative".

China's yuan also strengthened, with the positive market tone around trade talks helping it to rise to a 2-1/2 month high against the dollar. It was last up 0.15% at 7.0267 per dollar.

Gold was slightly lower as investors moved into riskier assets. Spot gold was trading at $1,511.52 per ounce, down 0.13%.

Asian shares surged on Monday, with a broad regional gauge hitting more than 14-week highs, as growing optimism over US-China trade talks and upbeat US job data boosted global investors' appetite for riskier assets.

Asian shares surged on Monday, with a broad regional gauge hitting more than 14-week highs, as growing optimism over US-China trade talks and upbeat US job data boosted global investors' appetite for riskier assets. MSCI's broadest index of Asia-Pacific shares outside Japan jumped 1.08%, touching its highest level since July 24, and on track for its biggest one-day gain since Oct. 11. Equity markets in Europe were set to follow Asia higher, with pan-region Euro Stoxx 50 futures up 0.53%, German DAX futures 0.49% higher and FTSE futures rising 0.41% in early trading. In Asia, Hong Kong's Hang Seng rose 1.36%, and Seoul's Kospi added 1.43%. In mainland China, blue chips were up 0.72%, and Australian shares were 0.27% higher. Markets in Japan were closed for a holiday. The United States and China both said on Friday that they had made progress in talks aimed at defusing their protracted trade war, and US officials said a deal could be signed this month. But in a note to clients, analysts at National Australia Bank sounded a note of caution. "As much as the US-China trade updates continue to point to a Phase 1 deal looking like a certainty, the contentious issues on whether the US will cancel the planned December tariffs and remove some of the current tariffs in line with China's demands remains an unknown and if the issue is not resolved then a deal could easily collapse," they said. In comments on Friday, White House economic adviser Larry Kudlow said tariffs set to kick in on Dec. 15, which would cover Chinese imports such as laptops, toys and electronics, would remain on the table, and the decision whether to cancel them would be made by US President Donald Trump. Any lingering uncertainty over the outlook for trade talks was not enough to keep the S&P 500 from gaining 0.97% and the Nasdaq rising 1.13% to fresh record closing highs on Friday. The Dow Jones Industrial Average rose 1.11%. On Monday, U.S. S&P 500 e-mini stock futures were up 0.2% at 3,067.8. US job growth slowed less than expected in October and hiring in the prior two months was stronger than previously estimated, data from the Labor Department showed on Friday. Those numbers followed a private survey of manufacturers in China that showed better-than-expected factory activity in October. Rob Carnell, Asia-Pacific chief economist at ING in Singapore, said some market optimism was "probably justified" in the wake of the positive data. "Everybody had been looking for a much worse number and it didn't materialise, so some bounce from that was entirely plausible and reasonable." But he added that continued uncertainty over trade talks and less room for monetary easing by global central banks made for a murky outlook. "It's difficult to see why you wouldn't be at least thinking, there is a 'good profit-taking opportunity right now' and positioning for a slightly worse outcome," he said. While cash treasuries were not trading due to the Japanese market holiday, US 10-year Treasury futures were down 0.11% amid the broadly bullish market mood. The implied yield on the 10-year Treasury futures contract expiring in December was 1.65%. Oil prices, which had surged on hopes for a US-China trade deal, pulled back on Monday. Global benchmark Brent crude was off 0.57% at $61.34 per barrel and US West Texas Intermediate crude was 0.55% lower at $55.89. In the currency market, the dollar was up 0.06% against the yen at 108.23, and the euro was up 0.02% to buy $1.1167. The dollar index, which tracks the greenback against a basket of six major rivals, was down 0.02% at 97.222. Those small moves contrasted with a 1.42% jump in the South African rand against the dollar. The currency rallied on relief that Moody's maintained South Africa's investment-grade rating on Friday, though the agency cut its outlook on the rating to "negative". China's yuan also strengthened, with the positive market tone around trade talks helping it to rise to a 2-1/2 month high against the dollar. It was last up 0.15% at 7.0267 per dollar. Gold was slightly lower as investors moved into riskier assets. Spot gold was trading at $1,511.52 per ounce, down 0.13%.

Asian shares climb to 14-week highs on hopes US, China getting close to trade deal

Top <a href="https://www.wionews.com/world/us-china-trade-deal-in-sight-after-progress-in-high-level-talks-259369">Chinese and US trade negotiators</a> have "reached consensus on principles", China's commerce ministry announced in a statement Saturday.

Chinese Vice Premier Liu He spoke by phone with US Trade Representative Robert Lighthizer and Treasury Secretary Mnuchin on Friday, and "conducted serious and constructive discussions on properly addressing their core concerns and reached consensus on principles," the ministry said.

Additionally, "the two sides discussed the next consultations," the ministry said, without providing further detail.

Uncertainty has swirled over the potential US-China trade deal since the cancellation earlier this week of the APEC summit in Chile, where US President Donald Trump said that he expected a "phase one" trade deal with Beijing to be signed after an 18-month trade impasse between the two economic giants.

But Chile's President Sebastian Pinera announced Wednesday that his country could no longer host the event, due to violent unrest in the city.

China and the US have exchanged blows for over a year, with tariffs now impacting hundreds of billions of dollars in two-way trade.

Now with the 2020 presidential election approaching, and Trump under pressure from the impeachment enquiry in Congress, US trade officials have focused on getting a <a href="https://www.wionews.com/world/us-china-top-trade-negotiators-to-talk-again-on-friday-258968">partial deal in the books</a>.

Top Chinese and US trade negotiators have "reached consensus on principles", China's commerce ministry announced in a statement Saturday. Chinese Vice Premier Liu He spoke by phone with US Trade Representative Robert Lighthizer and Treasury Secretary Mnuchin on Friday, and "conducted serious and constructive discussions on properly addressing their core concerns and reached consensus on principles," the ministry said.

Top Chinese and US trade negotiators have "reached consensus on principles", China's commerce ministry announced in a statement Saturday. Chinese Vice Premier Liu He spoke by phone with US Trade Representative Robert Lighthizer and Treasury Secretary Mnuchin on Friday, and "conducted serious and constructive discussions on properly addressing their core concerns and reached consensus on principles," the ministry said. Additionally, "the two sides discussed the next consultations," the ministry said, without providing further detail. Uncertainty has swirled over the potential US-China trade deal since the cancellation earlier this week of the APEC summit in Chile, where US President Donald Trump said that he expected a "phase one" trade deal with Beijing to be signed after an 18-month trade impasse between the two economic giants. But Chile's President Sebastian Pinera announced Wednesday that his country could no longer host the event, due to violent unrest in the city. China and the US have exchanged blows for over a year, with tariffs now impacting hundreds of billions of dollars in two-way trade. Now with the 2020 presidential election approaching, and Trump under pressure from the impeachment enquiry in Congress, US trade officials have focused on getting a partial deal in the books.

China, United States trade negotiators reach 'consensus on principles'

United States&nbsp;stocks finished lower on Monday, ahead of a new round of trade negotiations between the world's two largest economies.

The Dow Jones Industrial Average erased 95.70 points, or 0.36 per cent, to 26,478.02. The Standard and Poor's 500 decreased 13.22 points, or 0.45 per cent, to 2,938.79. The Nasdaq Composite Index was down 26.18 points, or 0.33 per cent, to 7,956.29.

Ten of the 11 primary Standard and Poor's 500 sectors closed lower, with energy down 0.92 per cent, becoming the worst-performing group. Communication services rose a modest 0.04 per cent, the only gainer.

Investors are awaiting the US-China trade talks which are set to begin later this week.

"The effects of the existing trade taxes are seen in investment spending. Companies are less likely to invest when the supply chains that have been built up over thirty years are being threatened," analysts at Swiss investment bank UBS said in a note on Monday.

Wall Street is also expecting Federal Reserve Chairman Jerome Powell's upcoming speech at the US&nbsp;National Association for Business Economics annual meeting.

Last week, a flurry of weak US&nbsp;data raised hope for easier monetary policy from the Federal Reserve.

Market expectations for a rate cut later this month were more than 70 per cent, according to the CME Group's FedWatch tool.

United States stocks finished lower on Monday, ahead of a new round of trade negotiations between the world's two largest economies. The Dow Jones Industrial Average erased 95.

United States stocks finished lower on Monday, ahead of a new round of trade negotiations between the world's two largest economies. The Dow Jones Industrial Average erased 95.70 points, or 0.36 per cent, to 26,478.02. The Standard and Poor's 500 decreased 13.22 points, or 0.45 per cent, to 2,938.79. The Nasdaq Composite Index was down 26.18 points, or 0.33 per cent, to 7,956.29. Ten of the 11 primary Standard and Poor's 500 sectors closed lower, with energy down 0.92 per cent, becoming the worst-performing group. Communication services rose a modest 0.04 per cent, the only gainer. Investors are awaiting the US-China trade talks which are set to begin later this week. "The effects of the existing trade taxes are seen in investment spending. Companies are less likely to invest when the supply chains that have been built up over thirty years are being threatened," analysts at Swiss investment bank UBS said in a note on Monday. Wall Street is also expecting Federal Reserve Chairman Jerome Powell's upcoming speech at the US National Association for Business Economics annual meeting. Last week, a flurry of weak US data raised hope for easier monetary policy from the Federal Reserve. Market expectations for a rate cut later this month were more than 70 per cent, according to the CME Group's FedWatch tool.

US stocks decline as Wall Street awaits trade talks with China

US&nbsp;President Donald Trump said his administration was "<a href="https://www.wionews.com/world/beijing-washington-hold-deeply-integrated-mutually-beneficial-ties-china-250854">making a lot of progress" with China</a> on Friday, as deputy-level trade talks continued for a second day and Washington lifted tariffs on over 400 Chinese products.

Trump, speaking to reporters at a White House meeting with Australian Prime Minister Scott Morrison, said the United States was taking in billions of dollars from tariffs imposed on Chinese products, adding that the total would soon reach $100 billion.

"I will say this: we're making a lot of <a href="https://www.wionews.com/world/trade-talks-seen-as-unlikely-to-mend-us-china-divide-250119">progress with China</a>," Trump said.

The United States Trade Representative's office issued three Federal Register notices exempting a wide range of products from tariffs in response to requests from US&nbsp;companies, which argued that the levies would cause economic hardship.

The 437 exempted products range from printed circuit boards for computer graphics processors to dog collars, laminated wood flooring and miniature Christmas lights.

Chinese and US&nbsp;negotiators are holding two days of talks that were expected to focus heavily on agriculture, and lay the groundwork for high-level talks in early October that would determine whether the two countries are working toward a solution or headed for new and higher tariffs on each other's goods.

A delegation of about 30 Chinese officials, led by Vice Finance Minister Liao Min, met counterparts at the US&nbsp;Trade Representative's (USTR) office near the White House. Deputy USTR Jeffrey Gerrish led the US&nbsp;delegation.

The United States is asking that China substantially increase purchases of American soybeans and other farm commodities, a person with knowledge of the planned discussions told Reuters.

Chinese delegates will visit American farm regions with US&nbsp;officials next week, in a gesture of goodwill.

However, the Trump administration and China's Communist Party remain far apart on issues that are the basis of their trade dispute, including the US&nbsp;declaring some Chinese state companies national security risks, and Beijing's refusal to revamp its economic model by eliminating subsidies for state companies.

Trade experts, executives and government officials in both countries say that even if the September and October talks produce an interim deal, the <a href="https://www.wionews.com/world/china-signals-veto-in-the-standoff-with-us-over-afghan-un-mission-diplomats-250192">US-China trade war</a> has hardened into a political and ideological battle that runs far deeper than tariffs and could take years to resolve.

Observers in Beijing said the new tariff exemptions were a welcome sign, but the trade talks remain on a delicate footing.

The exemptions are "seen as a goodwill signal by China," Hu Xijin, editor of the influential state-run tabloid Global Times, said Friday on Twitter. "Interaction of goodwill between China and the US&nbsp;is still fragile."

US President Donald Trump said his administration was "making a lot of progress" with China on Friday, as deputy-level trade talks continued for a second day and Washington lifted tariffs on over 400 Chinese products.

US President Donald Trump said his administration was "making a lot of progress" with China on Friday, as deputy-level trade talks continued for a second day and Washington lifted tariffs on over 400 Chinese products. Trump, speaking to reporters at a White House meeting with Australian Prime Minister Scott Morrison, said the United States was taking in billions of dollars from tariffs imposed on Chinese products, adding that the total would soon reach $100 billion. "I will say this: we're making a lot of progress with China," Trump said. The United States Trade Representative's office issued three Federal Register notices exempting a wide range of products from tariffs in response to requests from US companies, which argued that the levies would cause economic hardship. The 437 exempted products range from printed circuit boards for computer graphics processors to dog collars, laminated wood flooring and miniature Christmas lights. Chinese and US negotiators are holding two days of talks that were expected to focus heavily on agriculture, and lay the groundwork for high-level talks in early October that would determine whether the two countries are working toward a solution or headed for new and higher tariffs on each other's goods. A delegation of about 30 Chinese officials, led by Vice Finance Minister Liao Min, met counterparts at the US Trade Representative's (USTR) office near the White House. Deputy USTR Jeffrey Gerrish led the US delegation. The United States is asking that China substantially increase purchases of American soybeans and other farm commodities, a person with knowledge of the planned discussions told Reuters. Chinese delegates will visit American farm regions with US officials next week, in a gesture of goodwill. However, the Trump administration and China's Communist Party remain far apart on issues that are the basis of their trade dispute, including the US declaring some Chinese state companies national security risks, and Beijing's refusal to revamp its economic model by eliminating subsidies for state companies. Trade experts, executives and government officials in both countries say that even if the September and October talks produce an interim deal, the US-China trade war has hardened into a political and ideological battle that runs far deeper than tariffs and could take years to resolve. Observers in Beijing said the new tariff exemptions were a welcome sign, but the trade talks remain on a delicate footing. The exemptions are "seen as a goodwill signal by China," Hu Xijin, editor of the influential state-run tabloid Global Times, said Friday on Twitter. "Interaction of goodwill between China and the US is still fragile."

US lifts tariffs on 400 Chinese products, Trump cites trade progress

US and Chinese officials will restart trade talks at the end of this week, but any agreement the world's largest economies carve out is expected to be a superficial fix.

The trade war has hardened into a political and ideological battle that runs far deeper than tariffs, trade experts, executives, and officials in both countries say.

China's Communist Party is unlikely to budge on <a href="https://www.wionews.com/business-economy/american-business-community-wants-trade-deal-between-us-china-249649">US</a>&nbsp;demands to fundamentally change the way it runs the economy, while the US&nbsp;won't backtrack on labelling Chinese companies national security threats.

The conflict between the two countries could take a decade to resolve, White House economic adviser <a href="https://www.wionews.com/world/china-us-talks-likely-to-heat-up-in-october-meeting-kudlow-248069">Larry Kudlow</a> warned on September&nbsp;6.

Yu Yongding, an influential former policy adviser to China's central bank, told Reuters that China was in no rush to make a deal.

Presidents Donald Trump and Xi Jinping may hammer out an interim agreement in October to soothe stock markets and claim political victory after this week's lower-level talks.

But any final agreement is "extremely unlikely to meaningfully address the Chinese structural reforms" sought by the US&nbsp;and other countries, said Kellie Meiman Hock, a former US&nbsp;Trade Representative official and managing partner with McLarty Associates, a policy and government consultancy.

Negotiators have made little discernible progress on the many points of disagreement since negotiations broke down in May, sources briefed on the talks say.

Issues divide&nbsp;

Beijing is unwilling to address the way it supports state-owned companies and subsidises their products in coming talks, sources in <a href="https://www.wionews.com/world/us-china-trade-war-to-knock-05-points-off-global-growth-french-finance-minister-247859">China and the US</a> say.

The US&nbsp;continues to label the Chinese tech company Huawei a national security threat, and dangle the threat of new tariffs against China.

"The ultimate result of talks must be the dropping of all tariffs," said He Weiwen, senior fellow, Chongyang Institute for Financial Studies at Renmin University.

"This is the baseline for China." He is not optimistic about the talks' prospects. Since trade negotiations between the world's largest economies collapsed in May, both countries have also broken promises and traded public insults.

The mood is upbeat, but a single Trump tweet could turn that around, analysts say.

"They're locked in this uncomfortable embrace," said William Reinsch, a former senior Commerce Department official and Center for Strategic and International Studies fellow.

"Both presidents have undercut their negotiators and neither side can rely on what the other has said," he said.

 
'Techtonic shift&nbsp; 

Trump's "tough on China" stance has swept in a new way of thinking about Beijing in Washington, despite the unpopularity of many of his other policies.

The US&nbsp;Congress, bitterly divided along partisan lines on most issues, is united about the need for systemic reform in China.

Democrats running against Trump aren't likely to repair the China relationship if they take the White House in 2020.

In a debate on September 12, presidential candidates used terms like corruption and theft to discuss China's trade practices.

"There's been a tectonic shift," said Warren Maruyama, former general counsel for the US&nbsp;Trade Representative's office and a partner with law firm Hogan Lovells.

"The old idea that China was in the middle of free-market economic reforms that would lead them our way is effectively dead," Maruyama said.

"There's bipartisan support for a tougher China policy."

Lawmakers are responding, with several China-related bills making their way through Congress, from legislation to punish Beijing for human rights abuses against Muslims in Xinjiang and to support protesters in Hong Kong.

Additionally, the 2020 National Defense Authorization Act, or NDAA, could include provisions targeting China on issues ranging from technology transfers to the sale of synthetic opioids.

US and Chinese officials will restart trade talks at the end of this week, but any agreement the world's largest economies carve out is expected to be a superficial fix.

US and Chinese officials will restart trade talks at the end of this week, but any agreement the world's largest economies carve out is expected to be a superficial fix. The trade war has hardened into a political and ideological battle that runs far deeper than tariffs, trade experts, executives, and officials in both countries say. China's Communist Party is unlikely to budge on US demands to fundamentally change the way it runs the economy, while the US won't backtrack on labelling Chinese companies national security threats. The conflict between the two countries could take a decade to resolve, White House economic adviser Larry Kudlow warned on September 6. Yu Yongding, an influential former policy adviser to China's central bank, told Reuters that China was in no rush to make a deal. Presidents Donald Trump and Xi Jinping may hammer out an interim agreement in October to soothe stock markets and claim political victory after this week's lower-level talks. But any final agreement is "extremely unlikely to meaningfully address the Chinese structural reforms" sought by the US and other countries, said Kellie Meiman Hock, a former US Trade Representative official and managing partner with McLarty Associates, a policy and government consultancy. Negotiators have made little discernible progress on the many points of disagreement since negotiations broke down in May, sources briefed on the talks say. Issues divide Beijing is unwilling to address the way it supports state-owned companies and subsidises their products in coming talks, sources in China and the US say. The US continues to label the Chinese tech company Huawei a national security threat, and dangle the threat of new tariffs against China. "The ultimate result of talks must be the dropping of all tariffs," said He Weiwen, senior fellow, Chongyang Institute for Financial Studies at Renmin University. "This is the baseline for China." He is not optimistic about the talks' prospects. Since trade negotiations between the world's largest economies collapsed in May, both countries have also broken promises and traded public insults. The mood is upbeat, but a single Trump tweet could turn that around, analysts say. "They're locked in this uncomfortable embrace," said William Reinsch, a former senior Commerce Department official and Center for Strategic and International Studies fellow. "Both presidents have undercut their negotiators and neither side can rely on what the other has said," he said. 'Techtonic shift Trump's "tough on China" stance has swept in a new way of thinking about Beijing in Washington, despite the unpopularity of many of his other policies. The US Congress, bitterly divided along partisan lines on most issues, is united about the need for systemic reform in China. Democrats running against Trump aren't likely to repair the China relationship if they take the White House in 2020. In a debate on September 12, presidential candidates used terms like corruption and theft to discuss China's trade practices. "There's been a tectonic shift," said Warren Maruyama, former general counsel for the US Trade Representative's office and a partner with law firm Hogan Lovells. "The old idea that China was in the middle of free-market economic reforms that would lead them our way is effectively dead," Maruyama said. "There's bipartisan support for a tougher China policy." Lawmakers are responding, with several China-related bills making their way through Congress, from legislation to punish Beijing for human rights abuses against Muslims in Xinjiang and to support protesters in Hong Kong. Additionally, the 2020 National Defense Authorization Act, or NDAA, could include provisions targeting China on issues ranging from technology transfers to the sale of synthetic opioids.

Trade talks seen as unlikely to mend US-China divide

With US-China trade tensions roiling markets, investors are counting on support for stocks coming from a Federal Reserve willing to keep cutting interest rates to help the US economy avoid a severe downturn.

A quarter-point rate reduction is widely expected when the Fed issues its next policy statement on Wednesday, which would be the central bank's second such cut after lowering rates in July for the first time since 2008. That puts the greater focus on clues about how much further the Fed will go.

“If the Fed gives forward guidance that suggests less than what the market is thinking, then you will probably see markets sell-off," said Jamie Cox, managing partner of Harris Financial Group in Richmond, Virginia. "So long as the Fed plays along with what markets are pricing in think markets will be very stable.”

The Fed's 180-degree pivot from tightening monetary policy last year to easing it has helped drive the stock market's overall strong performance in 2019. The benchmark S&amp;P 500 has climbed 20 per cent this year and is near all-time highs.

The central bank in July cited signs of a global slowdown, simmering US-China trade tensions and a desire to boost too-low inflation as it lowered borrowing costs.

Markets are pricing in a near 90 per cent probability that the Fed will shave another quarter-point from its current overnight lending rate of 2.00 per cent to 2.25 per cent, according to the CME Group's FedWatch tool. There is a roughly 65 per cent probability that the Fed makes at least one more quarter-point cut by the end of the year, according to FedWatch.

"The market is going to want to see a focus that we have a cut and there is likely more coming," said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta. "They want to know that the Fed is vigilant and will act aggressively if needed."

That raises the importance of the newest set of policymakers' rate-path projections - the so-called dot plot - that will be released along with the rate decision. UBS economists said in a note they expect that will shift lower overall for 2019, but project only two cuts total for the year, which could irk both investors and a <a href="https://www.wionews.com/world/turkeys-erdogan-to-discuss-with-trump-buying-us-patriot-missiles-249560">US president</a> eager for a more aggressive posture.

President Donald Trump has frequently criticized the Fed for not cutting rates more swiftly and significantly, with the Fed chair he appointed, Jerome Powell, the primary target of his ire.

The European Central Bank's decision on Thursday to cut interest rates and restart a larger stimulus program could further pressure the Fed to cut rates, as the ECB's move stands to weaken the euro against the dollar and thereby drive up the price of US exports - an issue that especially vexes Trump.

Powell, who will give a news conference after the central bank issues its statement, has made comments in the past that have shaken the market, including in July, when he said the bank's rate cut might not be the start of a lengthy easing campaign to shore up the economy.

"Every meeting has the ability for Jay Powell to say something that upsets markets a little bit,” said Arthur Hogan, chief market strategist at National Securities Corp.

Powell "has had enough practice to know that he does not want to move markets or make news,” he added.

Of the past eight easing cycles since 1981, four have been "insurance" cycles, when economic problems loom but the economy is not in a recession, while four were pre-recession cycles, according to research from Allianz Global Investors.

One year into an easing cycle, the S&amp;P 500 rose an average of 20.4 per cent during insurance cycles, while the index fell an average of 10.2 per cent during pre-recession cycles, according to Allianz.

"Historically, what they’re doing now, which is cutting rates in an economy that is not in a recession and not really in any imminent risk of a recession, has been positive for the stock market," said Mona Mahajan, US investment strategist at Allianz.

The stock market overall has typically responded well to a second rate cut, which Wednesday's would be, with the Dow Jones Industrial Average rising an average of 20.3 per cent one year later, according to Ned Davis Research. The weakest performance has come when the Fed tried and failed to prevent a recession.

The probability of a recession in the next 12 months is nearly 38 per cent, its highest in about a decade, according to the New York Fed's recession indicator, which is based on the US Treasury yield curve. Last month, yields on two-year US bonds exceeded those on 10-year notes, an inversion of the yield curve that is seen as an omen of recession.

An escalation in the US-China tariff war is contributing to economic uncertainty and is top among concerns for stock investors. Late last month, a key speech from Powell was upstaged when Trump issued tweets that heightened trade tensions.

“I do think it’s important that the Fed helps ease financial conditions and helps reduce the probability of recession," SunTrust's Lerner said. "If the tariff fight ratchets up more, then what the Fed does, the effect will be less.

With US-China trade tensions roiling markets, investors are counting on support for stocks coming from a Federal Reserve willing to keep cutting interest rates to help the US economy avoid a severe downturn.

With US-China trade tensions roiling markets, investors are counting on support for stocks coming from a Federal Reserve willing to keep cutting interest rates to help the US economy avoid a severe downturn. A quarter-point rate reduction is widely expected when the Fed issues its next policy statement on Wednesday, which would be the central bank's second such cut after lowering rates in July for the first time since 2008. That puts the greater focus on clues about how much further the Fed will go. “If the Fed gives forward guidance that suggests less than what the market is thinking, then you will probably see markets sell-off," said Jamie Cox, managing partner of Harris Financial Group in Richmond, Virginia. "So long as the Fed plays along with what markets are pricing in think markets will be very stable.” The Fed's 180-degree pivot from tightening monetary policy last year to easing it has helped drive the stock market's overall strong performance in 2019. The benchmark S&P 500 has climbed 20 per cent this year and is near all-time highs. The central bank in July cited signs of a global slowdown, simmering US-China trade tensions and a desire to boost too-low inflation as it lowered borrowing costs. Markets are pricing in a near 90 per cent probability that the Fed will shave another quarter-point from its current overnight lending rate of 2.00 per cent to 2.25 per cent, according to the CME Group's FedWatch tool. There is a roughly 65 per cent probability that the Fed makes at least one more quarter-point cut by the end of the year, according to FedWatch. "The market is going to want to see a focus that we have a cut and there is likely more coming," said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta. "They want to know that the Fed is vigilant and will act aggressively if needed." That raises the importance of the newest set of policymakers' rate-path projections - the so-called dot plot - that will be released along with the rate decision. UBS economists said in a note they expect that will shift lower overall for 2019, but project only two cuts total for the year, which could irk both investors and a US president eager for a more aggressive posture. President Donald Trump has frequently criticized the Fed for not cutting rates more swiftly and significantly, with the Fed chair he appointed, Jerome Powell, the primary target of his ire. The European Central Bank's decision on Thursday to cut interest rates and restart a larger stimulus program could further pressure the Fed to cut rates, as the ECB's move stands to weaken the euro against the dollar and thereby drive up the price of US exports - an issue that especially vexes Trump. Powell, who will give a news conference after the central bank issues its statement, has made comments in the past that have shaken the market, including in July, when he said the bank's rate cut might not be the start of a lengthy easing campaign to shore up the economy. "Every meeting has the ability for Jay Powell to say something that upsets markets a little bit,” said Arthur Hogan, chief market strategist at National Securities Corp. Powell "has had enough practice to know that he does not want to move markets or make news,” he added. Of the past eight easing cycles since 1981, four have been "insurance" cycles, when economic problems loom but the economy is not in a recession, while four were pre-recession cycles, according to research from Allianz Global Investors. One year into an easing cycle, the S&P 500 rose an average of 20.4 per cent during insurance cycles, while the index fell an average of 10.2 per cent during pre-recession cycles, according to Allianz. "Historically, what they’re doing now, which is cutting rates in an economy that is not in a recession and not really in any imminent risk of a recession, has been positive for the stock market," said Mona Mahajan, US investment strategist at Allianz. The stock market overall has typically responded well to a second rate cut, which Wednesday's would be, with the Dow Jones Industrial Average rising an average of 20.3 per cent one year later, according to Ned Davis Research. The weakest performance has come when the Fed tried and failed to prevent a recession. The probability of a recession in the next 12 months is nearly 38 per cent, its highest in about a decade, according to the New York Fed's recession indicator, which is based on the US Treasury yield curve. Last month, yields on two-year US bonds exceeded those on 10-year notes, an inversion of the yield curve that is seen as an omen of recession. An escalation in the US-China tariff war is contributing to economic uncertainty and is top among concerns for stock investors. Late last month, a key speech from Powell was upstaged when Trump issued tweets that heightened trade tensions. “I do think it’s important that the Fed helps ease financial conditions and helps reduce the probability of recession," SunTrust's Lerner said. "If the tariff fight ratchets up more, then what the Fed does, the effect will be less.

Wall Street Week Ahead: With rate cut likely, market wonders how low Fed will go

Asian markets mostly rose Wednesday with a broadly upbeat tone across trading floors ahead of major meetings at the European and US central banks, while there is also a growing sense of optimism over <a href="https://www.wionews.com/world/china-us-trade-talks-to-restart-after-g20-tariff-truce-239483">China-US trade talks</a>.

News that <a href="https://www.wionews.com/india-news/i-asked-nsa-john-bolton-to-resign-tweets-us-president-donald-trump-248901">Donald Trump</a> had fired his fervently hawkish national security adviser also lifted sentiment with analysts saying it could see the White House take a less strident approach and ease geopolitical tensions.

With the global economy sputtering, attention has turned increasingly to central banks as investors look for more stimulus.

Watch Vidoe:&nbsp;US President Donald Trump fires NSA John Bolton

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On Thursday the European Central Bank holds one of its most anticipated gatherings and hopes are for a series of fresh measures including a possible interest rate cut, fresh bond-buying quantitative easing (QE) or other loosening tools.

That is followed by the Federal Reserve's board meeting next week, where it is tipped to announce another reduction in borrowing costs as the world's top economy which has so far been the strongest globally stutters.

"With the expectation of the resumption of quantitative easing by the ECB&nbsp;and a rate cut by the Federal Reserve next week, the risk environment has solidified and tempted investors out of hiding from the bond markets and back into equities," said Jeffrey Halley, senior market analyst at OANDA.

In the afternoon trade, Hong Kong climbed 1.6 per cent as investors made the most of the upbeat mood to pick up cheap stocks after months of sometimes violent protests in the city weighed on the stock market.

Tokyo finished one per cent higher, Singapore put on more than one per cent, Seoul rose 0.8 per cent, Sydney gained 0.4 per cent and Taipei added 0.3 per cent, while Manila, Mumbai, Bangkok, and Jakarta also posted gains.

However, Shanghai was fell 0.4 per cent, with little major reaction to the news that China had listed 16 US categories of goods it would exempt from tariffs, ahead of planned top-level trade talks next month. Dealers also appeared to brush off Beijing's decision on Tuesday to lift limits on foreign investment in the country.

Wellington tumbled almost two per cent as Prime Minister Jacinda Ardern's government was rocked by its handling of sexual assault allegations against a top Labour Party staffer.

In early trade London rose 0.5 per cent, Frankfurt jumped 0.6 per cent and Paris edged up 0.3 per cent.

Trump's decision to sack John Bolton as a leading security adviser raised the possibility of an easing of tensions between the US and several nations, particularly Iran.

The controversial <a href="https://www.wionews.com/world/us-security-adviser-john-bolton-to-urge-tougher-uk-stance-on-iran-and-china-242307">Bolton</a> was closely linked to the invasion of Iraq and other past aggressive US foreign policy decisions and was seen as one of the main driving forces in Trump's muscular approach to Tehran, North Korea, and Venezuela, among others.

Stephen Innes at AxiTrader said that while the move did not necessarily mean a huge change in policy direction, "it does eliminate the most vocal advocate for US military-enforced regime change in the Trump administration".

He added that "from a geopolitical risk perspective, it does lessen war risk premiums, especially in Syria, Venezuela, and Iran and opens the door to more friendly discussion with North Korea".

However, the possibility of dialling down in the stand-off between the US and Iran led to a plunge Tuesday in the price of oil, with WTI diving almost three per cent from an intraday high and Brent shedding 2.5 per cent.

The two contracts later clawed back some of the losses on bargain-buying expectations for more output cuts by leading producers led by Saudi Arabia.

In share trading companies linked to Apple enjoyed healthy buying after the US tech giant unveiled new iPhones, including a lower-priced offering, and set launch dates for its original video offering as well as its game subscription service.

In Tokyo, Alps Alpine surged three per cent, Japan Display put on nearly three per cent and Sharp rallied more than four per cent, while LG Display in Seoul was up two per cent in Seoul. Taipei-listed Foxconn rose by 0.2 per cent.

On forex markets, the positive vibe helped the dollar up against the safe-haven yen, while higher-yielding, riskier currencies edged up against the greenback.

The pound held its recent gains as Prime Minister Boris Johnson said he was pushing to strike a divorce agreement with the European Union, having lost a series of key votes to MPs opposed to a no-deal Brexit.

Asian markets mostly rose Wednesday with a broadly upbeat tone across trading floors ahead of major meetings at the European and US central banks, while there is also a growing sense of optimism over China-US trade talks.

Asian markets mostly rose Wednesday with a broadly upbeat tone across trading floors ahead of major meetings at the European and US central banks, while there is also a growing sense of optimism over China-US trade talks. News that Donald Trump had fired his fervently hawkish national security adviser also lifted sentiment with analysts saying it could see the White House take a less strident approach and ease geopolitical tensions. With the global economy sputtering, attention has turned increasingly to central banks as investors look for more stimulus. Watch Vidoe: US President Donald Trump fires NSA John Bolton × On Thursday the European Central Bank holds one of its most anticipated gatherings and hopes are for a series of fresh measures including a possible interest rate cut, fresh bond-buying quantitative easing (QE) or other loosening tools. That is followed by the Federal Reserve's board meeting next week, where it is tipped to announce another reduction in borrowing costs as the world's top economy which has so far been the strongest globally stutters. "With the expectation of the resumption of quantitative easing by the ECB and a rate cut by the Federal Reserve next week, the risk environment has solidified and tempted investors out of hiding from the bond markets and back into equities," said Jeffrey Halley, senior market analyst at OANDA. In the afternoon trade, Hong Kong climbed 1.6 per cent as investors made the most of the upbeat mood to pick up cheap stocks after months of sometimes violent protests in the city weighed on the stock market. Tokyo finished one per cent higher, Singapore put on more than one per cent, Seoul rose 0.8 per cent, Sydney gained 0.4 per cent and Taipei added 0.3 per cent, while Manila, Mumbai, Bangkok, and Jakarta also posted gains. However, Shanghai was fell 0.4 per cent, with little major reaction to the news that China had listed 16 US categories of goods it would exempt from tariffs, ahead of planned top-level trade talks next month. Dealers also appeared to brush off Beijing's decision on Tuesday to lift limits on foreign investment in the country. Wellington tumbled almost two per cent as Prime Minister Jacinda Ardern's government was rocked by its handling of sexual assault allegations against a top Labour Party staffer. In early trade London rose 0.5 per cent, Frankfurt jumped 0.6 per cent and Paris edged up 0.3 per cent. Trump's decision to sack John Bolton as a leading security adviser raised the possibility of an easing of tensions between the US and several nations, particularly Iran. The controversial Bolton was closely linked to the invasion of Iraq and other past aggressive US foreign policy decisions and was seen as one of the main driving forces in Trump's muscular approach to Tehran, North Korea, and Venezuela, among others. Stephen Innes at AxiTrader said that while the move did not necessarily mean a huge change in policy direction, "it does eliminate the most vocal advocate for US military-enforced regime change in the Trump administration". He added that "from a geopolitical risk perspective, it does lessen war risk premiums, especially in Syria, Venezuela, and Iran and opens the door to more friendly discussion with North Korea". However, the possibility of dialling down in the stand-off between the US and Iran led to a plunge Tuesday in the price of oil, with WTI diving almost three per cent from an intraday high and Brent shedding 2.5 per cent. The two contracts later clawed back some of the losses on bargain-buying expectations for more output cuts by leading producers led by Saudi Arabia. In share trading companies linked to Apple enjoyed healthy buying after the US tech giant unveiled new iPhones, including a lower-priced offering, and set launch dates for its original video offering as well as its game subscription service. In Tokyo, Alps Alpine surged three per cent, Japan Display put on nearly three per cent and Sharp rallied more than four per cent, while LG Display in Seoul was up two per cent in Seoul. Taipei-listed Foxconn rose by 0.2 per cent. On forex markets, the positive vibe helped the dollar up against the safe-haven yen, while higher-yielding, riskier currencies edged up against the greenback. The pound held its recent gains as Prime Minister Boris Johnson said he was pushing to strike a divorce agreement with the European Union, having lost a series of key votes to MPs opposed to a no-deal Brexit.

Asian markets extend gains over optimism on China-US trade talks

China and the United States on Thursday agreed to hold high-level trade talks in early October in Washington, amid fears that an escalating trade war could trigger a global economic recession.

 
The talks were agreed to in a phone call between Chinese Vice Premier Liu He and US Trade Representative Robert Lighthizer and US&nbsp;Treasury Secretary Steven Mnuchin, China's commerce ministry said in a statement on its website.

China's central bank governor Yi Gang was also on the call. "Both sides agreed that they should work together and take practical actions to create good conditions for consultations," the ministry said.

 
"Lead negotiators from both sides had a really good phone call this morning," ministry spokesman Gao Feng said in a weekly briefing. "We'll strive to achieve substantial progress during the 13th Sino-US&nbsp;high-level negotiations in early October."

 
Gao also said Beijing opposes any escalation in the trade war. Trade teams from the two countries will hold talks in mid-September before the high-level talks next month, the ministry said.

 
A spokesman for the US&nbsp;Trade Representative's office confirmed that Lighthizer and Mnuchin spoke with Liu and said they agreed to hold ministerial-level trade talks in Washington "in the coming weeks".

 
News of the early October talks lifted most Asian share markets on Thursday, raising hopes these can de-escalate the US-China trade war before it inflicts further damage on the global economy.

 
On Sunday, Washington began imposing 15 per cent&nbsp;tariffs on an array of Chinese imports, while China began placing duties on US&nbsp;crude oil. China said on Monday it had lodged a complaint against the United States at the World Trade Organization.

 
The United States plans to increase the tariff rate to 30 per cent&nbsp;from the 25 per cent&nbsp;duty already in place on $250 billion worth of Chinese imports from October 1.

US President Donald Trump had warned on Tuesday he would be tougher on Beijing in a second term if trade talks dragged on, compounding market fears that disputes between the United States and China could trigger a US&nbsp;recession.

 
Chinese leaders will have a packed schedule next month, gearing up for National Day celebrations scheduled for October 1.

 
They will also hold a key meeting in October to discuss improving governance and "perfecting" the country's socialist system, state media has said.

China and the United States on Thursday agreed to hold high-level trade talks in early October in Washington, amid fears that an escalating trade war could trigger a global economic recession.

China and the United States on Thursday agreed to hold high-level trade talks in early October in Washington, amid fears that an escalating trade war could trigger a global economic recession. The talks were agreed to in a phone call between Chinese Vice Premier Liu He and US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin, China's commerce ministry said in a statement on its website. China's central bank governor Yi Gang was also on the call. "Both sides agreed that they should work together and take practical actions to create good conditions for consultations," the ministry said. "Lead negotiators from both sides had a really good phone call this morning," ministry spokesman Gao Feng said in a weekly briefing. "We'll strive to achieve substantial progress during the 13th Sino-US high-level negotiations in early October." Gao also said Beijing opposes any escalation in the trade war. Trade teams from the two countries will hold talks in mid-September before the high-level talks next month, the ministry said. A spokesman for the US Trade Representative's office confirmed that Lighthizer and Mnuchin spoke with Liu and said they agreed to hold ministerial-level trade talks in Washington "in the coming weeks". News of the early October talks lifted most Asian share markets on Thursday, raising hopes these can de-escalate the US-China trade war before it inflicts further damage on the global economy. On Sunday, Washington began imposing 15 per cent tariffs on an array of Chinese imports, while China began placing duties on US crude oil. China said on Monday it had lodged a complaint against the United States at the World Trade Organization. The United States plans to increase the tariff rate to 30 per cent from the 25 per cent duty already in place on $250 billion worth of Chinese imports from October 1. US President Donald Trump had warned on Tuesday he would be tougher on Beijing in a second term if trade talks dragged on, compounding market fears that disputes between the United States and China could trigger a US recession. Chinese leaders will have a packed schedule next month, gearing up for National Day celebrations scheduled for October 1. They will also hold a key meeting in October to discuss improving governance and "perfecting" the country's socialist system, state media has said.

China, US to hold trade talks in October; Beijing says phone call went well

Asian shares extended gains on Thursday and US stock futures jumped after China said it will hold trade talks with the United States in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.8%, while the Shanghai composite index surged 1.8%. Japan's Nikkei added 2.4%.

US stock futures reversed early losses and rose 1%.

The Chinese yuan jumped versus the dollar in offshore trade, while safe-haven assets such as gold and the yen fell.

China's confirmation of trade talks added to upbeat geopolitical news overnight. A parliamentary vote in Britain put the brakes on the nation's no-deal exit from the European Union, Hong Kong withdrew a contentious extradition bill that sparked recent protests and political turmoil in Italy appeared to be easing.

China's Commerce Ministry said its trade team will consult with their US counterparts in mid-September&nbsp;in preparation for negotiations in early October, hinting at progress in reducing trade friction.

Both sides had agreed to take actual actions to create favourable conditions, the ministry added, without giving more details.

"Since yesterday, there has been a limited downside in markets because of what happened in Hong Kong, but now the US-China talks are the story," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management Co in Tokyo.

"It's the same about Brexit, which means less downside risk."

Hong Kong shares erased early losses to rise 0.5%. They had jumped in afternoon trade on Wednesday after leader Carrie Lam said she was withdrawing an extradition bill that had triggered months of often violent protests in the Asian financial hub.

In currency markets, sterling held onto gains against the dollar in Asia after rallying the most in more than five months on Wednesday after lawmakers voted to prevent Prime Minister Boris Johnson taking Britain out of the European Union without a deal on Oct. 31.

But, more than three years since the United Kingdom voted narrowly to leave the EU, the outcome of Brexit is still unclear, with possible outcomes ranging from a crash out of the EU to abandoning the whole endeavour.

Against the offshore yuan, the dollar fell 0.2% to 7.1324 yuan.

US Treasury yields extended gains in Asia and the yield curve steepened, both signs that investors were willing to take on riskier assets.

The 10-year yield rose to 1.4758%, while two-year yields rose to 1.4519%.

The spread between two- and 10-year Treasury yields, the most commonly used measure of the yield curve, rose to its highest since Aug&nbsp;21 on Wednesday but narrowed slightly in Asian trade.

The curve inverted on Aug 14 for the first time since 2007 when long-term yields traded below short-term yields, which is a widely accepted indicator of the coming recession.

US West Texas Intermediate crude also reversed losses to trade up 0.2%.

Asian shares extended gains on Thursday and US stock futures jumped after China said it will hold trade talks with the United States in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy.

Asian shares extended gains on Thursday and US stock futures jumped after China said it will hold trade talks with the United States in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.8%, while the Shanghai composite index surged 1.8%. Japan's Nikkei added 2.4%. US stock futures reversed early losses and rose 1%. The Chinese yuan jumped versus the dollar in offshore trade, while safe-haven assets such as gold and the yen fell. China's confirmation of trade talks added to upbeat geopolitical news overnight. A parliamentary vote in Britain put the brakes on the nation's no-deal exit from the European Union, Hong Kong withdrew a contentious extradition bill that sparked recent protests and political turmoil in Italy appeared to be easing. China's Commerce Ministry said its trade team will consult with their US counterparts in mid-September in preparation for negotiations in early October, hinting at progress in reducing trade friction. Both sides had agreed to take actual actions to create favourable conditions, the ministry added, without giving more details. "Since yesterday, there has been a limited downside in markets because of what happened in Hong Kong, but now the US-China talks are the story," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management Co in Tokyo. "It's the same about Brexit, which means less downside risk." Hong Kong shares erased early losses to rise 0.5%. They had jumped in afternoon trade on Wednesday after leader Carrie Lam said she was withdrawing an extradition bill that had triggered months of often violent protests in the Asian financial hub. In currency markets, sterling held onto gains against the dollar in Asia after rallying the most in more than five months on Wednesday after lawmakers voted to prevent Prime Minister Boris Johnson taking Britain out of the European Union without a deal on Oct. 31. But, more than three years since the United Kingdom voted narrowly to leave the EU, the outcome of Brexit is still unclear, with possible outcomes ranging from a crash out of the EU to abandoning the whole endeavour. Against the offshore yuan, the dollar fell 0.2% to 7.1324 yuan. US Treasury yields extended gains in Asia and the yield curve steepened, both signs that investors were willing to take on riskier assets. The 10-year yield rose to 1.4758%, while two-year yields rose to 1.4519%. The spread between two- and 10-year Treasury yields, the most commonly used measure of the yield curve, rose to its highest since Aug 21 on Wednesday but narrowed slightly in Asian trade. The curve inverted on Aug 14 for the first time since 2007 when long-term yields traded below short-term yields, which is a widely accepted indicator of the coming recession. US West Texas Intermediate crude also reversed losses to trade up 0.2%.

Confirmation of US: China trade talks buoys global shares, investor spirit

Levi Strauss &amp; Co has been "deliberate and diligent" in moving production out of China because of uncertainty hanging over tariffs on goods imported from China, Chief Executive Officer Chip Bergh said in an interview with Reuters.

Just 1% or 2% of Levi's product sold in the United States are manufactured in China, Bergh said, compared to 16% two years ago.

Bergh was speaking one day before President Donald Trump said he would impose tariffs on another $300 billion of Chinese goods, including apparel.

Trump has used tariffs as a tool to negotiate better trade terms, saying bad deals cost millions of US jobs.

Along with apparel, the new tariffs hit consumer goods such as electronics and toys and come in addition to those already imposed on $250 billion of other goods imported from China.

The on-again, off-again nature of the U.S. tariffs on Chinese goods had created uncertainty for many US&nbsp;retailers, Bergh said.

"Every day is a new day," he said. "Sometimes it looks like it's definitely going to happen and then other days you think it's off, it's not going to happen."

San Francisco-based Levi's, which returned to the public markets in March, is part of a wave of retailers that have been shifting supply chains out of China to countries such as Vietnam and Bangladesh.

The trend was initially in response to higher Chinese wages but the exodus is expected to be accelerated by the new tariffs, which Trump said will go into effect Sept. 1.

They are expected to increase consumers' costs and have an impact across the entire retail industry.

Apparel retailers like Gap Inc, handbag brand Steve Madden Ltd and department store Macy's Inc also have acted to move production out of China.

However, China still is a big supplier to the industry with 42% of apparel and 69% of footwear sold in the United States made in China, according to the American Apparel and Footwear Association.

Following the latest tariff news, several large retail trade groups warned the levied tariffs will hurt consumer purchases, raise prices and limit hiring.

Levi's has two of its own factories in Poland and South Africa but mostly uses third-party vendors or suppliers spread across 22 different countries, said Bergh, who joined the company in September 2011.

"We've narrowed down our supplier base during the time that I've been here to really develop deeper, more strategic relationships with many of our suppliers," he said.

Many of Levi's suppliers in China are publicly traded companies that have multi-country footprints, said Bergh, that has diversified risk by building factories in places like Vietnam and Cambodia.

Among Levi's best-selling products are the 501 men's jeans, which go for between $39.99 and $49.99, according to Levi's website.

Trump also has threatened to impose tariffs on Mexico in retaliation for illegal immigration largely from Central America, across the US-Mexican border. He is pushing Congress to approve the United States-Mexico-Canada Agreement (USMCA), a deal his administration reached to replace the North American Free Trade Agreement (NAFTA).

Levi Strauss & Co has been "deliberate and diligent" in moving production out of China because of uncertainty hanging over tariffs on goods imported from China, Chief Executive Officer Chip Bergh said in an interview with Reuters.

Levi Strauss & Co has been "deliberate and diligent" in moving production out of China because of uncertainty hanging over tariffs on goods imported from China, Chief Executive Officer Chip Bergh said in an interview with Reuters. Just 1% or 2% of Levi's product sold in the United States are manufactured in China, Bergh said, compared to 16% two years ago. Bergh was speaking one day before President Donald Trump said he would impose tariffs on another $300 billion of Chinese goods, including apparel. Trump has used tariffs as a tool to negotiate better trade terms, saying bad deals cost millions of US jobs. Along with apparel, the new tariffs hit consumer goods such as electronics and toys and come in addition to those already imposed on $250 billion of other goods imported from China. The on-again, off-again nature of the U.S. tariffs on Chinese goods had created uncertainty for many US retailers, Bergh said. "Every day is a new day," he said. "Sometimes it looks like it's definitely going to happen and then other days you think it's off, it's not going to happen." San Francisco-based Levi's, which returned to the public markets in March, is part of a wave of retailers that have been shifting supply chains out of China to countries such as Vietnam and Bangladesh. The trend was initially in response to higher Chinese wages but the exodus is expected to be accelerated by the new tariffs, which Trump said will go into effect Sept. 1. They are expected to increase consumers' costs and have an impact across the entire retail industry. Apparel retailers like Gap Inc, handbag brand Steve Madden Ltd and department store Macy's Inc also have acted to move production out of China. However, China still is a big supplier to the industry with 42% of apparel and 69% of footwear sold in the United States made in China, according to the American Apparel and Footwear Association. Following the latest tariff news, several large retail trade groups warned the levied tariffs will hurt consumer purchases, raise prices and limit hiring. Levi's has two of its own factories in Poland and South Africa but mostly uses third-party vendors or suppliers spread across 22 different countries, said Bergh, who joined the company in September 2011. "We've narrowed down our supplier base during the time that I've been here to really develop deeper, more strategic relationships with many of our suppliers," he said. Many of Levi's suppliers in China are publicly traded companies that have multi-country footprints, said Bergh, that has diversified risk by building factories in places like Vietnam and Cambodia. Among Levi's best-selling products are the 501 men's jeans, which go for between $39.99 and $49.99, according to Levi's website. Trump also has threatened to impose tariffs on Mexico in retaliation for illegal immigration largely from Central America, across the US-Mexican border. He is pushing Congress to approve the United States-Mexico-Canada Agreement (USMCA), a deal his administration reached to replace the North American Free Trade Agreement (NAFTA).

Levi's slims down China supply chain exposure as trade war rages on

US&nbsp;Treasury Secretary Steven Mnuchin said on Saturday he would discuss trade issues with People's Bank of China Governor Yi Gang, but the main progress in the <a href="https://www.wionews.com/world/china-us-tensions-very-negative-influence-on-global-economy-australia-pm-scott-morrison-225234">US-China trade dispute</a> would take place later this month at a meeting between <a href="https://www.wionews.com/world/trump-criticises-nasa-moon-mission-after-promoting-it-earlier-225364">President Donald Trump</a> and Chinese President Xi Jinping.

Mnuchin told reporters on the sidelines of the G20 finance leaders meeting in Japan that the Trump-Xi meeting was the "next important meeting" in the trade dispute.

The Treasury chief likened the meeting, unconfirmed by China, to a Trump-Xi meeting last December in Buenos Aires, which paved the way for five months of negotiations to try to resolve the issue.

Watch: US-China Trade War - Advantage For India?

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-us-china-trade-war-advantage-for-india-223999/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Mnuchin said he did not have specific goals for his discussions on Sunday with Yi, a key member of China's trade negotiating team. He said the two finance leaders would discuss economic and finance issues as part of their normal G20 interactions and also discuss trade issues, but no announcement was expected.

"This is not a negotiating meeting," Mnuchin said.

Mnuchin said the United States and China were about 90 percent of the way toward reaching "an historic agreement" before China backtracked on certain commitments. He said that if China wants to resume the negotiations on the basis of the texts prior to an early May breakdown of talks, the US&nbsp;side is ready to engage.

"If we can get the right agreement, that's great. If we can't get the right agreement, we will proceed with tariffs," Mnuchin said.

The Trump administration is taking steps to impose 25% tariffs on the remaining $300 billion worth of Chinese imports so far untouched by the trade war between the world's two largest economies. These tariffs could be ready for activation around the end of June, when the Osaka G20 summit take place.

Mnuchin said that the United States wants free, fair and balanced trade with China, in part to close a gaping US&nbsp;trade deficit with China.

"If we can't have that, the end result will be that my expectation is that many companies will move their production out of China to other locations," due to tariffs, Mnuchin said.

US Treasury Secretary Steven Mnuchin said on Saturday he would discuss trade issues with People's Bank of China Governor Yi Gang, but the main progress in the US-China trade dispute would take place later this month at a meeting between President Donald Trump and Chinese President Xi Jinping.

US Treasury Secretary Steven Mnuchin said on Saturday he would discuss trade issues with People's Bank of China Governor Yi Gang, but the main progress in the US-China trade dispute would take place later this month at a meeting between President Donald Trump and Chinese President Xi Jinping. Mnuchin told reporters on the sidelines of the G20 finance leaders meeting in Japan that the Trump-Xi meeting was the "next important meeting" in the trade dispute. The Treasury chief likened the meeting, unconfirmed by China, to a Trump-Xi meeting last December in Buenos Aires, which paved the way for five months of negotiations to try to resolve the issue. Watch: US-China Trade War - Advantage For India? Mnuchin said he did not have specific goals for his discussions on Sunday with Yi, a key member of China's trade negotiating team. He said the two finance leaders would discuss economic and finance issues as part of their normal G20 interactions and also discuss trade issues, but no announcement was expected. "This is not a negotiating meeting," Mnuchin said. Mnuchin said the United States and China were about 90 percent of the way toward reaching "an historic agreement" before China backtracked on certain commitments. He said that if China wants to resume the negotiations on the basis of the texts prior to an early May breakdown of talks, the US side is ready to engage. "If we can get the right agreement, that's great. If we can't get the right agreement, we will proceed with tariffs," Mnuchin said. The Trump administration is taking steps to impose 25% tariffs on the remaining $300 billion worth of Chinese imports so far untouched by the trade war between the world's two largest economies. These tariffs could be ready for activation around the end of June, when the Osaka G20 summit take place. Mnuchin said that the United States wants free, fair and balanced trade with China, in part to close a gaping US trade deficit with China. "If we can't have that, the end result will be that my expectation is that many companies will move their production out of China to other locations," due to tariffs, Mnuchin said.

Main progress on US-China trade to be at Trump-Xi summit: US Treasury Secretary Steven Mnuchin

China has demonstrated more than enough sincerity to reach a mutually beneficial deal and end trade tensions with the United States. However, trapped in hegemonic ideology, the U.S. has responded by unilateral and protectionist tariff hikes that put world economy in danger, according to a commentary published by China's Xinhua News Agency on Sunday.

China's utmost sincerity in trade talks a sign of strength

The U.S. accusation that China has been forcing foreign companies to transfer technology is groundless and nothing but a pretext aimed at suppressing China's development, said Chinese experts.

US accusation of 'forced technology transfer' is baseless: experts

China announced higher tariffs on 60 billion US dollars worth of American goods in retaliation for US President Donald Trump's latest penalties on Chinese products, sending Wall Street into a slide.

China's hike of US tariffs sparks Asia stock losses

By raising tariffs on Chinese products, the United States will harm the interests of its businesses and consumers in the long term, according to Chinese economic experts at a seminar on China-US trade in Beijing on Sunday.

US raising tariffs will harm American businesses, consumers: Chinese experts

Traders of India's diamond hub Surat city, in Prime Minister, Narendra Modi's home state Gujarat, are claiming a steep fall in the export of the polished precious stones owing to the ongoing US-China trade war.

India's diamond traders claim drop in exports due to US-China trade war

The United States is "comfortable" with higher tariffs on China if a mutual trade agreement cannot be reached, the U.S. Commerce Secretary Wilbur Ross said on Friday (May 10), as trade tensions between the two countries escalate.

U.S 'comfortable' with higher tariffs on China if trade negotiations fail

Oil prices jumped around 1.5 per cent on Monday, pushed up by optimism that talks in Beijing can resolve <a href="http://www.wionews.com/world/explaining-the-us-china-trade-war-which-grabbed-spotlight-in-2018-185043">a trade war between the United States and China</a>, while supply cuts by major producers also supported crude.

Brent crude futures were at $57.93 per barrel at 0635 GMT, up 87 cents, or 1.5 per cent, from their last close.

US West Texas Intermediate (WTI) crude oil futures were at $48.76 per barrel, up 80 cents, or 1.7 per cent.

Financial markets were riding a relief rally on Monday on expectations that face-to-face trade negotiations between delegates from Washington and Beijing, starting on Monday, would lead to an easing in tensions between the two biggest economies in the world.

The United States and Beijing have been locked in an escalating trade spat since early 2018, raising import tariffs on each other's goods. The dispute has weighed on economic growth.

In the latest sign of a widespread economic slowdown that could also hit fuel demand, British new car sales in 2018 fell at their fastest rate since the global financial crisis a decade ago, preliminary data from the Society of Motor Manufacturers and Traders (SMMT) showed on Monday.

Goldman Sachs said in a note on Monday it had downgraded its average Brent crude oil forecast for 2019 from $70 per barrel to $62.50 a barrel because of "the strongest macro headwinds since 2015."

J P Morgan said in a note late last week that "the 3 per cent global growth pace we have been anticipating for the next two quarters looks increasingly challenging."

The bank also said that "bond and commodity markets appear to be pricing in on average close to a 60 per cent chance of a US recession over the coming year compared to a 40 per cent chance by our economists and 27 per cent chance by the consensus."

Opec cuts, rising US supply

Despite the likelihood of a slowdown, future crude prices were being supported by supply cuts started late last year by a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC Russia.

Goldman said the cuts would result in a gradual increase in spot crude prices in 2019 as high inventories revert to their 5-year averages.

OPEC oil supply fell in December by 460,000 barrels per day (bpd), to 32.68 million bpd, a Reuters survey found last week, led by cuts from top exporter Saudi Arabia.

The cuts are aimed at reining in swelling supply, especially in the United States.

Because of record US crude oil production of 11.7 million bpd, American fuel stockpiles are rising, according to weekly data by the Energy Information Administration (EIA) released on Friday.

Crude oil inventories rose by 7,000 barrels in the week ended on December 28, to 441.42 million barrels, more than 5 million barrels above their 5-year average.

Distillate and gasoline stocks, however, rose by a whopping 9.5 million and 6.9 million barrels, to 119.9 million and 240 million barrels respectively, the EIA data showed.

Financial markets were riding a relief rally on Monday on expectations that face-to-face trade negotiations between delegates from Washington and Beijing would lead to an easing in tensions.

Oil prices jumped around 1.5 per cent on Monday, pushed up by optimism that talks in Beijing can resolve a trade war between the United States and China, while supply cuts by major producers also supported crude. Brent crude futures were at $57.93 per barrel at 0635 GMT, up 87 cents, or 1.5 per cent, from their last close. US West Texas Intermediate (WTI) crude oil futures were at $48.76 per barrel, up 80 cents, or 1.7 per cent. Financial markets were riding a relief rally on Monday on expectations that face-to-face trade negotiations between delegates from Washington and Beijing, starting on Monday, would lead to an easing in tensions between the two biggest economies in the world. The United States and Beijing have been locked in an escalating trade spat since early 2018, raising import tariffs on each other's goods. The dispute has weighed on economic growth. In the latest sign of a widespread economic slowdown that could also hit fuel demand, British new car sales in 2018 fell at their fastest rate since the global financial crisis a decade ago, preliminary data from the Society of Motor Manufacturers and Traders (SMMT) showed on Monday. Goldman Sachs said in a note on Monday it had downgraded its average Brent crude oil forecast for 2019 from $70 per barrel to $62.50 a barrel because of "the strongest macro headwinds since 2015." J P Morgan said in a note late last week that "the 3 per cent global growth pace we have been anticipating for the next two quarters looks increasingly challenging." The bank also said that "bond and commodity markets appear to be pricing in on average close to a 60 per cent chance of a US recession over the coming year compared to a 40 per cent chance by our economists and 27 per cent chance by the consensus." Opec cuts, rising US supply Despite the likelihood of a slowdown, future crude prices were being supported by supply cuts started late last year by a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC Russia. Goldman said the cuts would result in a gradual increase in spot crude prices in 2019 as high inventories revert to their 5-year averages. OPEC oil supply fell in December by 460,000 barrels per day (bpd), to 32.68 million bpd, a Reuters survey found last week, led by cuts from top exporter Saudi Arabia. The cuts are aimed at reining in swelling supply, especially in the United States. Because of record US crude oil production of 11.7 million bpd, American fuel stockpiles are rising, according to weekly data by the Energy Information Administration (EIA) released on Friday. Crude oil inventories rose by 7,000 barrels in the week ended on December 28, to 441.42 million barrels, more than 5 million barrels above their 5-year average. Distillate and gasoline stocks, however, rose by a whopping 9.5 million and 6.9 million barrels, to 119.9 million and 240 million barrels respectively, the EIA data showed.

Oil rises on US-China trade talks, OPEC-led supply cuts

<a href="http://www.wionews.com/world/oil-prices-rise-as-opec-output-cuts-seen-deeper-than-previously-expected-185630">Oil prices</a> were mixed in thin trading on Wednesday as the US&nbsp;benchmark rebounded from steep losses in the previous session, even though concern over the health of the global economy continued to overshadow the market in the longer term.

US&nbsp;West Texas Intermediate (WTI) crude futures, were up 29 cents, or 0.68 per cent, at $42.82 per barrel, at 0355 GMT, having at one point risen as high as 2 per cent from the last close. They had slumped 6.7 per cent in the previous session to $42.53 a barrel - the lowest since June 2017.

Meanwhile, Brent crude oil futures were down 11 cents or 0.22 per cent at $50.36 a barrel, having skidded 6.2 per cent in the previous session to $50.47 a barrel, the weakest since August 2017.

"$50 is a psychological support level (for Brent)," said Margaret Yang, market analyst for CMC Markets in Singapore.

"But market confidence needs to be restored for oil price...that includes an equity market rebound and/or a bigger production cut from major oil exporters," Yang said, referring to an OPEC-led agreement to lower output from next month.

Broader financial markets have been under pressure on worries about a global economic slowdown amid higher US&nbsp;interest rates and the US-China trade dispute.

"US&nbsp;equity futures are trading a bit firmer this morning triggering some little buying interest in the oil markets," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

But Innes added macroeconomics fears will continue unless the Organization of the Petroleum Exporting Countries (OPEC) "reassures markets the viability of their supply cuts and even impose deeper ones as some members have suggested". OPEC and allies led by Russia agreed this month to cut oil production by 1.2 million barrels per day from January.

Russian Energy Minister Alexander Novak said on Tuesday that oil prices would become more stable in the first half of 2019, supported by OPEC and non-OPEC countries' joint efforts to cut output.

Elsewhere, US&nbsp;political turmoil triggered by the partial shutdown of the federal government is also adding to market concerns. President Donald&nbsp;Trump&nbsp;said on Tuesday that shutdown could last until his demand for US-Mexico border wall money is met.

Oil prices were mixed in thin trading on Wednesday as the US benchmark rebounded from steep losses in the previous session, even though concern over the health of the global economy continued to overshadow the market in the longer term.

Oil prices were mixed in thin trading on Wednesday as the US benchmark rebounded from steep losses in the previous session, even though concern over the health of the global economy continued to overshadow the market in the longer term. US West Texas Intermediate (WTI) crude futures, were up 29 cents, or 0.68 per cent, at $42.82 per barrel, at 0355 GMT, having at one point risen as high as 2 per cent from the last close. They had slumped 6.7 per cent in the previous session to $42.53 a barrel - the lowest since June 2017. Meanwhile, Brent crude oil futures were down 11 cents or 0.22 per cent at $50.36 a barrel, having skidded 6.2 per cent in the previous session to $50.47 a barrel, the weakest since August 2017. "$50 is a psychological support level (for Brent)," said Margaret Yang, market analyst for CMC Markets in Singapore. "But market confidence needs to be restored for oil price...that includes an equity market rebound and/or a bigger production cut from major oil exporters," Yang said, referring to an OPEC-led agreement to lower output from next month. Broader financial markets have been under pressure on worries about a global economic slowdown amid higher US interest rates and the US-China trade dispute. "US equity futures are trading a bit firmer this morning triggering some little buying interest in the oil markets," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore. But Innes added macroeconomics fears will continue unless the Organization of the Petroleum Exporting Countries (OPEC) "reassures markets the viability of their supply cuts and even impose deeper ones as some members have suggested". OPEC and allies led by Russia agreed this month to cut oil production by 1.2 million barrels per day from January. Russian Energy Minister Alexander Novak said on Tuesday that oil prices would become more stable in the first half of 2019, supported by OPEC and non-OPEC countries' joint efforts to cut output. Elsewhere, US political turmoil triggered by the partial shutdown of the federal government is also adding to market concerns. President Donald Trump said on Tuesday that shutdown could last until his demand for US-Mexico border wall money is met.

US  oil prices rebound after tumbling to lowest since June 2017 on economy fears

Oil edged up to $51 a barrel on Wednesday after reaching its lowest since June 2017 on perceptions that a price slide prompted by worries over the global economy had been overdone amid an OPEC-led effort to tighten supply.

Crude has been caught up in wider financial market weakness as the <a href="http://www.wionews.com/world/us-government-shutdown-may-go-into-new-year-top-trump-aide-mulvaney-186044">US&nbsp;government shutdown</a>, higher US&nbsp;interest rates and the US-China trade dispute unnerved investors and exacerbated worries over global growth.

Brent crude, the global benchmark, was up 43 cents at $50.90 at 0949 GMT. It earlier fell to $49.93, the lowest since July 2017, and posted a 6.2 per cent slide in the previous session.

US&nbsp;crude was up 74 cents at $43.27.

"I think there is a little bit of over-extension to the downside linked to global market fears," said Olivier Jakob, an analyst at Petromatrix. "It's all about equities."

"OPEC has shown it wants higher prices and is working towards that goal."

Trade was thin due to the Christmas holidays. Asian stock markets retreated again on Wednesday. Markets in Britain, Germany and France will remain closed on Wednesday.

While economic worries have weighed, the outlook is not as weak as in 2016 when a supply glut built up because the Organization of the Petroleum Exporting Countries this time is trying to prop up the market, Jakob said.

Concerned that a new glut could form, OPEC and its allies including Russia decided earlier this month to return to a policy of cutting production in 2019, unwinding a decision taken in June 2018 to pump more oil.

The producers' alliance, known as OPEC+, plans to lower output by 1.2 million barrels per day, of which OPEC's share is 800,000 bpd, next year, and some ministers have even suggested taking further action.

Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, said some buying interest had returned after firmer trading in US equity futures.

But, he added, economic worries will continue to weigh unless OPEC reassures the market as to the viability of the supply cuts and "even imposes deeper ones as some members have suggested".

Oil edged up to $51 a barrel on Wednesday after reaching its lowest since June 2017 on perceptions that a price slide prompted by worries over the global economy had been overdone amid an OPEC-led effort to tighten supply.

Oil edged up to $51 a barrel on Wednesday after reaching its lowest since June 2017 on perceptions that a price slide prompted by worries over the global economy had been overdone amid an OPEC-led effort to tighten supply. Crude has been caught up in wider financial market weakness as the US government shutdown, higher US interest rates and the US-China trade dispute unnerved investors and exacerbated worries over global growth. Brent crude, the global benchmark, was up 43 cents at $50.90 at 0949 GMT. It earlier fell to $49.93, the lowest since July 2017, and posted a 6.2 per cent slide in the previous session. US crude was up 74 cents at $43.27. "I think there is a little bit of over-extension to the downside linked to global market fears," said Olivier Jakob, an analyst at Petromatrix. "It's all about equities." "OPEC has shown it wants higher prices and is working towards that goal." Trade was thin due to the Christmas holidays. Asian stock markets retreated again on Wednesday. Markets in Britain, Germany and France will remain closed on Wednesday. While economic worries have weighed, the outlook is not as weak as in 2016 when a supply glut built up because the Organization of the Petroleum Exporting Countries this time is trying to prop up the market, Jakob said. Concerned that a new glut could form, OPEC and its allies including Russia decided earlier this month to return to a policy of cutting production in 2019, unwinding a decision taken in June 2018 to pump more oil. The producers' alliance, known as OPEC+, plans to lower output by 1.2 million barrels per day, of which OPEC's share is 800,000 bpd, next year, and some ministers have even suggested taking further action. Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, said some buying interest had returned after firmer trading in US equity futures. But, he added, economic worries will continue to weigh unless OPEC reassures the market as to the viability of the supply cuts and "even imposes deeper ones as some members have suggested".

Oil rises to $51 after steep slide; growth fears weigh

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