US stocks show signs of stabilising, but gains were kept in check as the United States and China give conflicting signals on how their trade talks are progressing.
Key points:The major US share indices gained around 0.2pc, the first rise this weekChina and the US sent conflicting messages on the trade war, with President Trump saying “we’re doing very well with China”The benchmark S&P 500 index rose around 17pc over the first four months of the year, but is down 5pc in May
“China would love to make a deal with us,” US President Donald Trump told reporters at the White House.
“We had a deal and they broke the deal. I think if they had it to do again they wouldn’t have done what they did.
“I think we’re doing very well with China.”
However, a senior Chinese diplomat gave a conflicting message at a media conference in Beijing.
“We oppose a trade war but are not afraid of a trade war,” Chinese Vice-Foreign Minister Zhang Hanhui said.
“This kind of deliberately provoking trade disputes is naked economic terrorism, economic chauvinism, economic bullying.”
Trade tensions between the world’s two biggest economies escalated sharply earlier this month after the Trump administration accused China of having “reneged” on its previous promises to make structural changes to its economic practices.
Washington later imposed additional tariffs of up to 25 per cent on $US200 billion of Chinese goods, prompting Beijing to retaliate with its own tariffs.
Market snapshot at 7:50am (AEST):ASX SPI futures +0.3pc at 6,412, ASX 200 (Thursday’s close) -0.7pc at 6,392AUD: 69.08 US cents, 54.78 British pence, 62.06 euro cents, 75.74 Japanese yen, $NZ1.06US: Dow Jones +0.2pc at 25,170, S&P 500 +0.2pc at 2,789, Nasdaq +0.3pc at 7,568Europe: FTSE 100 +0.5pc at 7,118, DAX +0.5pc at