Wall Street rises on trade hopes, but China expectations lowered

(Reuters) – Wall Street rose on Wednesday on hopes of progress in U.S.-China trade talks, though stocks pared gains late after Chinese officials said Beijing had lowered expectations for negotiations this week.

All three major U.S. stock averages closed in the black, but lost ground as the closing bell approached after Chinese officials said goodwill was damaged by the U.S. Commerce Department’s blacklisting of 28 Chinese companies this week.

Investor sentiment got an early boost following a Bloomberg report that China remained open to agreeing to a partial trade deal with the United States.

Separately, the Financial Times said Beijing was offering to increase its annual purchases of U.S. agricultural products.

“A partial deal with China would at least pave the way for a larger deal down the road,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “Every day we get a different tweet and the market takes a different direction. Today is an up day on a favorable tweet.”

Minutes from the U.S. Federal Reserve’s September meeting showed most policymakers supported last month’s interest rate cut, and while all were generally more concerned with risks associated with the U.S.-China trade war and slowing global growth among other geopolitical issues, they differed on what that meant for the U.S. economy.

“There was some dissent in the vote, but everyone’s together on the concept of monetary policy setting being data dependent,” said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. “And recent data, particularly from the manufacturing sector, would continue to imply there’s a good probability of a rate reduction at the October meeting.”

A man walks through the rain on Wall St. outside the New York Stock Exchange (NYSE) in New York, U.S., October 9, 2019. REUTERS/Brendan McDermid

Trade tensions, signs of slowing economic growth and

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