Economy

U.S. stocks rally amid trade optimism, economic data

U.S. stocks rally amid trade optimism, economic data

By agreeing to buy more goods from the U.S., China may just shift its trade surplus toward other trading partners, said Tom Orlik, the chief economist for Bloomberg Economics. The Nasdaq Composite Index rose 72.76 points, or 1.03 percent, to 7,157.23.

China is offering to increase its imports over the next six years, CNBC reported Friday, following a report by The Wall Street Journal Thursday that said that U.S. officials were considering the lifting of some tariffs to induce China to make concessions to the U.S. on cyber-security and intellectual property rights.

The dollar index rose 0.27 percent, with the euro down 0.25 percent to $1.1366.

Over the last few days investors grew steadily more hopeful the US and China are narrowing their differences. -China trade dispute, rising interest rates in the US, slowing growth in China and Europe, and unstable political situations like Brexit all made it seem like 2019 could be a disappointing year and some investors felt a recession was a possibility.

But Trade Representative Robert Lighthizer has resisted the idea, and the proposal had not yet been introduced to President Donald Trump, according to the Journal.

Manufacturing data released by the Fed also showed the sector's biggest gain in 10 months in December.

Economists who've studied the trade relationship argue it would be hard to eliminate the gap, which they say is sustained in large part by US demand for Chinese products.

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Washington has insisted for months that it would not remove tariffs unless China agreed to significantly higher purchases from USA businesses and changes in its state-dominated economic system. The French CAC 40 gained 1.7 percent.

The New Taiwan dollar yesterday ended unchanged against the U.S. dollar at NT$30.842, but slid 0.1 percent from NT$30.802 on January 11.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.75 percent.

Chinese Vice Premier Liu He will visit the United States on January 30 and 31 for the latest round of talks aimed at resolving the trade dispute between the world's two largest economies.

It's not the first time China has made an offer to reduce the deficit as a way of trying to break the deadlock between the sides which has darkened the global economic outlook and roiled financial markets since a year ago. Brent crude, used to price global oils, added 2.5 percent to $62.70 a barrel in London.

In other commodities trading, wholesale gasoline rose 1.6 percent to $1.45 a gallon and heating oil added 1.6 percent to $1.92 a gallon. It's risen at least 1.9 percent every week during that rally. U.S. crude was last up $1.75, or up 3.36%, at $53.82 per barrel. It was on track for a weekly loss of 0.7 percent.