THE Dow Jones recorded its best day in a month rising by $60billion yesterday after Donald Trump branded his trade war with China "a little squabble.”
The US President’s remarks gave investors hope that Washington and Beijing would work out a deal resulting in all three major indexes closing in the black on Tuesday.
In a tweet, Trump said a trade deal “will…happen, and much faster than people think” while calling his relationship with China’s President Xi “unlimited.”
The Dow Jones recorded its best day in a month yesterday rising 207.06 points (0.82 per cent) to close at 25,532.05.
Meanwhile, the S&P 500 increased by 22.54 points (0.80 per cent) to finish at 2834.41 and the Nasdaq Composite rose 87.47 points (1.14 per cent) to close at 7734.49 meaning it jumped by $140bn.
According to Helal Miah, analyst at The Share Centre, this means the Dow climbed $60bn in one day while the S&P 500 jumped $20bn and the Nasdaq rose $140bn.
Republican firebrand Trump, who has repeatedly called Xi “my friend”, may speak to the Chinese leader on the phone to talk over trade negotiations, reports Barrons.com.
STRONG DAY FOR US MARKETS
They are expected to meet at the G20 summit in Japan next month which Trump says he expects to have a “very fruitful” discussion with the Community Party chief.
Last week, Trump warned China it will be “hurt very badly" if it doesn't strike a trade deal with the US.
In a direct message to counterpart President Xi he also said Beijing would soon have "nobody left to deal with."
His words came days after the US more than doubled tariffs on $200bn (£153.7bn) of Chinese goods, in a sharp escalation of their trade war.
In a series of tweets, Mr Trump said China had "taken so advantage of the US for so many years. Therefore, China should not retaliate – will only get worse!"
He was also quick to point out that US consumers could avoid any tariffs by buying the same products from other sources.
"Many tariffed companies will be leaving China for Vietnam and other such countries in Asia. That's why China wants to make a deal so badly!" he said.
TRUMP BULLISH OVER TRADE
He also tweeted: "I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries.
"Too expensive to buy in China. You had a great deal, almost completed, & you backed out!
"There will be nobody left in China to do business with. Very bad for China, very good for USA!
"But China has taken so advantage of the US for so many years, that they are way ahead (Our Presidents did not do the job). Therefore, China should not retaliate-will only get worse!"
However, despite the US president's threat China did today announce it would raise tariffs on $60 billion of US goods from June 1.
Beijing’s state-run media has went into propaganda overdrive amid the escalating trade war.
One editorial published by the Xinhua News Agency and the People's Daily said America was fighting for “greed and arrogance", reports CNN.
The opinion piece said that China is fighting to defend "its legitimate rights and interests."
Taking aim at Trump, the article continued: “The trade war in the United States is the creation of one person and his administration who have swept along the entire population of the country.
“Whereas the entire country and all the people of China are being threatened. For us, this is a real 'people's war'.”
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