Dow Jones SURGES by 350 points amid hopes of US-China trade talk progress
THE Dow Jones Industrial Average Index surged by 350 points at the open today amid signs of progress in trade talks between the United States and China.
IMF Director: 'A lot to be gained' from US China trade deal
The Dow jumped by 350 points shortly after the opening bell to reach 24,760.64. As of 14:50 GMT, the DJI is up by 240.24 points at 24,663.50. The S&P 500 opened higher by 26.72 points, or 1.01 percent, at 2,664.44. While the Nasdaq Composite gained 101.13 points, or 1.44 percent, to 7,121.66.
The jump in US stock markets comes amid a report suggested that China and the US could be set to move forward with trade talks with Beijing supposedly moving to cut import tariffs on American-made cars.
The report came after China's Vice Premier Liu He exchanged views on the next stage of trade talks with US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer.
European stocks also rallied on the news, with Germany's DAX climbing 2 percent.
The FTSE 100 rose 1.6 percent.
Very productive conversations going on with China!
US President Donald Trump spoke positively about relations with China as the two countries discussed a road map for the next stage of trade talks.
He described conversations with Beijing as "very productive" in a tweet earlier today.
President Trump said:"Very productive conversations going on with China! Watch for some important announcements!"
Mr Trump tweeted after a telephone call between Vice Premier Liu He and US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer.
The Wall Street Journal reported that Liu planned to go to Washington after the new year.
Very productive conversations going on with China! Watch for some important announcements!
— Donald J. Trump (@realDonaldTrump) December 11, 2018
Dow Jones: Economic data from the US is 'soft' says reporter
China's commerce ministry said in a statement Liu had spoken to Mnuchin and Lighthizer early on Tuesday, Beijing time, on a prearranged telephone call.
The ministry said: "Both sides exchanged views on putting into effect the consensus reached by the two countries' leaders at their meeting, and pushing forward the timetable and roadmap for the next stage of economic and trade consultations work."
A US Treasury spokesman confirmed that the call with Liu took place, but offered no further details.