US stocks boosted by report of possible lifting of China tariffs

• January 18 2019
• http://www.jamaicaobserver.com/business-report-daily-biz/us-stocks-boosted-by-report-of-possible-lifting-of-china-tariffs_154941

NEW YORK, United States (AFP) — Wall Street stocks climbed for a third straight session yesterday following a report the US could lift sanctions on China while leading bourses in Europe and Asia retreated.

US stocks were little changed through early afternoon but suddenly jumped higher after The Wall Street Journal reported Treasury Secretary Steven Mnuchin had proposed lifting some or all tariffs on China as a way to reassure markets and bolster the odds of a bigger trade deal.

But the article described the idea as part of a policy debate between Mnuchin and US Trade Representative Robert Lighthizer, who is more hawkish on China.

The Treasury Department told AFP on Thursday that no formal recommendation had been made by either Mnuchin or Lighthizer in the talks, which were “nowhere near completion”.

Among those shares that got a boost, Boeing, Caterpillar and General Motors gained at least one per cent. All three depend on China for a significant portion of sales.

Worries about the US-China trade war had been a headwind earlier in the US session and a factor in down sessions across major European and Asian markets following reports that US officials were carrying out a criminal probe into Chinese tech giant Huawei and could soon bring indictments over allegations of theft of trade secrets from its American business partners.

US lawmakers have also introduced a bill to ban the export of American parts and components to Chinese telecom companies that are in violation of US export control or sanctions laws — with Huawei and fellow Chinese firm ZTE the likely targets.