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Stock market news: Shares rise on Trump advisor’s China trade comments

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larry kudlow trump
Director
of National Economic Council Larry Kudlow

Getty Images/Pool

  • Stocks jump after Trump advisor says there is a “good
    possibility” the two countries can reach some sort of trade
    agreement over the weekend.
  • National Economic Council Director Larry Kudlow said
    that the White House was having “a lot of communication with
    the Chinese government at all levels.”
  • All major indexes in China, Japan, and Hong Kong
    climbed more than 1% on Wednesday on the back of the comments.
    European markets and US futures also gained. 

  • You can
    follow the latest market developments at Markets
    Insider.

Stock rallies
across Asia
 spread to European indexes and US futures on
Wednesday as investors took comfort from some reassuring words
about trade by one of President Donald Trump’s closest advisors.

Speaking on Wednesday,  National Economic Council Director
Larry Kudlow said that the White House was having “a lot of
communication with the Chinese government at all levels” ahead of
Sunday’s highly anticipated meeting between the president and his
Chinese counterpart, Xi Jinping.

Kudlow added that there is a “good possibility” the two
countries can reach some sort of trade agreement. That’s a major
flip from reports on Tuesday that a deal is “highly
unlikely.”


Read more: Lost
jobs, shrinking growth, and rotting crops — here are all the ways
Trump’s trade war is hurting America

Investors took Kudlow’s comments at face value, sending
shares in Asia, and particularly China, surging. All of China’s
major indexes closed more than 1% higher on the day, as did Hong
Kong’s Hang Seng, and Japan’s Nikkei 225. In China, the biggest
individual winner was the Shenzhen Composite, up 1.6%.

“Asian markets didn’t need to be told twice that Larry
Kudlow considers a trade deal between the US and China an open
possibility,” Jasper Lawler, head of research at London Capital
Group said on Wednesday morning. “Asian stocks powered higher as
risk-on dominated.” 

Rising stocks in Asia pushed the Japanese yen, which
typically rises in times of uncertainty, lower. 

In Europe, stocks are also higher, albeit with much smaller
gains. Around an hour into the trading day, the benchmark Euro
Stoxx 50 index is up about 0.3%.

Trump and Xi are set to meet at this weekend’s G20 summit
in Buenos Aires, Argentina, with the aim of reaching a deal to
prevent the 10%
tariff
 on $200 billion worth of Chinese goods from
increasing to 25% on January 1. If a deal cannot be reached,
Trump has threatened further tariffs on Chinese goods, with the
possibility of placing levies on all $500 billion of Chinese
goods coming to the US.

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