US Treasury Chief to Plan for Trade Meeting in China Soon

Stocks rebound after Trump predicts China talks will be 'very successful'

Stocks rebound after Trump predicts China talks will be 'very successful'

U.S. Treasury Secretary Steven Mnuchin will plan for another trade meeting in China at some point soon, a Treasury spokesman said on Tuesday, adding to President Donald Trump's earlier statements that U.S. dialogue with Beijing was continuing. Futures on the S&P 500 Index dipped 0.1%. Last year, China's Treasuries holdings fell by about 5%, second in scale only to the 2016 reduction.

Stocks Mixed as Trade Angst Lingers; Yuan Steadies: Markets Wrap More (Bloomberg) - Asian stocks were mixed Wednesday as a rebound in US equities failed to lift sentiment that remains fragile after the trade war escalated.

Shares briefly came off lows during Monday's session after President Donald Trump indicated he'll speak with China's Xi Jinping at the end of June during the G-20 summit and said he hasn't yet decided about fresh tariffs on the remaining $300 billion in Chinese imports. However, Wes Goodman via Bloomberg made the point that China has reduced U.S. debt in 2016 and in 2018 amongst speculation that it was trying to support the Yuan.

"It's clear that there is a lot of nervousness around the U.S".

On Monday, all three major USA benchmarks dropped more than 2% - only the second time this year that's happened - after China targeted some of the biggest US exporters in response to American tariffs.

For starters, if you look at the $16.2 trillion public treasuries market (excluding the $5.8 trillion the USA government holds), China has about $1.13 trillion of that, or about 7 percent of the total. West Texas crude rose above US$61 (S$84.5) a barrel. Stocks in China were especially hard-hit last week as the U.S. increased levies on about US$200 billion worth of Chinese goods, though state funds buying equities to ease the turmoil helped push shares in Shanghai up more than 3 per cent. The president sprinkled his criticisms of China over the last 48 hours with enough signals that negotiations have not completely broken down that traders rushed back into the beaten down market to find bargains.

Earnings this week include Alibaba, Tencent, Cisco, Nvidia.

So, if Beijing were to start dumping treasuries, flooding the open market, interest rates for the bonds they were dumping might increase, but just temporarily, because to sell they'd have to have willing buyers.

Today is another light economic report day, in the U.S., FOMC Member Williams is scheduled to speak along with FOMC Member George.

Australian unemployment is out on Thursday.

London stocks gained 0.9 percent in late morning deals. while Frankfurt won 0.5 percent and Paris rallied 1.1 percent in early afternoon trade. The MSCI Asia Pacific Index sank 0.8%, the lowest in 15 weeks. The offshore yuan held at 6.9079 per dollar. Australia's 10-year bond yield was at 1.70%.

The euro bought $1.1203, little changed.

The yen rose 0.3 per cent to 109.61 per United States dollar. Ten-year Treasury yields traded in a tight range around 2.40 per cent. Commodities targeted by Chinese tariffs - including soybean and cotton futures - also reversed losses.

Gold was steady at $1,297.54 an ounce.

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