Markets Rebound as US-China Tension Recedes

Markets have bounced back from the US-China trade war scare after the US and China signalled willingness to negotiate over the new tariffs.

US Treasury Secretary Steven Mnuchin said on Thursday that he and other officials are “available” for further talks.

“To the extent that China wants to make structural changes, I and the administration are available,” Mnuchin told the House Financial Services Committee. “We are not advocating tariffs. We are advocating fair trade.”

Despite this announcement, a Chinese official said no talks were currently underway. “From what I’ve learnt, both sides [the US and China] have not been in touch about restarting talks,” Chinese commerce ministry spokesman Gao Feng told a media briefing.

“We hope US firms can do more to lobby the US Government, and work hard to defend their own interests.”

On Wednesday, Beijing said it would hit back after the Trump administration announced its plan to impose a 10 per cent tariff on $US200 billion worth of Chinese goods.

The S&P index gained 0.9 per cent to 2,798.29, while the Dow Jones rose 224 points to 24,925. Nasdaq increased 1.4 per cent to 7,823.

Australian dollar also climbed 0.5 per cent to 74.07 US cents.