US, China leave next steps for trade talks unclear

President Donald Trump argued that China has not treated the U.S. fairly in terms of trade

President Donald Trump argued that China has not treated the U.S. fairly in terms of trade

The U.S. economy grew at an annual rate of 3.4 percent in the third quarter, and unemployment is at a five-decade low.

A statement from the Office of the US Trade Representative (USTR) did not characterize the tone of the talks or say what would happen next.

The two sides might be moving toward a "narrow agreement", but "U.S. trade hawks" want to "limit the scope of that agreement and keep the pressure up on Beijing", Eurasia Group analysts Michael Hirson, Jeffrey Wright and Paul Triolo said in a report.

The U.S. statement said the negotiations dealt with the need for any deal with China to be "subject to ongoing verification and effective enforcement" - a comment that reflects U.S. frustration that the Chinese have failed to live up to past commitments.

The United States and China will continue trade talks in Beijing for an unscheduled third day, U.S. officials said on Tuesday amid signs of progress on issues including purchases of USA farm and energy commodities and increased access to China's markets. The U.S. Trade Representative gave no hint of progress on those issues.

"I think there's a very good chance that we will get a reasonable settlement that China can live with, that we can live with and that addresses all of the key issues", Ross said in an interview with CNBC. We are right now taking in $billions in Tariffs.

Stocks cinched their fourth consecutive gain Wednesday as indexes around the world build on their early 2019 rally. Trump tweeted on Tuesday, the latest in a series of upbeat messages from him on the negotiations since both his meeting with Xi and the December market turmoil. Macy's went public in February 1992 and reached an all-time high of nearly $73 a share in mid-2015, but four of the five biggest one-day plunges in its history have come in the last three years.

Morgan Stanley now expects Brent to average $61 a barrel this year, down from a previous estimate of $69 a barrel, and US crude to average $54 per barrel, against a prior forecast of $60.

The S&P 500 index added 11.68 points, or 0.5 percent, to 2,596.64. In late December, stocks rallied after Mastercard SpendingPulse said shoppers spent $850 billion between November 1 and Dec. 24, an increase of 5 percent from the same time a year earlier.

"Chinese and US officials wrapped up three days of trade talks today with one-day extension". Stocks linked to faster economic growth, such as technology and energy companies, kept rising.

"We're negotiating and having tremendous success with China", Trump told reporters as he left the White House on a trip to the USA border with Mexico on the 20th day of a partial shutdown of the USA government.

While there were indications that China would be open to buying more U.S. agricultural and energy products and allowing market access, demands for Chinese structural reforms to halt forced technology transfers and intellectual property theft were greater hurdles in the discussions, people familiar with the talks said.

"If it is immediately after these talks, it really means that something executable is going to happen; if it is next month or so, then you have a feeling that things are not really that executable for the moment".

Also Tuesday, North Korean leader Kim Jong-un arrived in Beijing in a possible effort to co-ordinate with the North's only major ally ahead of a possible meeting with Trump.

However, a USTR statement emphasized American insistence on "structural changes" in Chinese technology policy, market access, protection of foreign patents and copyrights and cyber theft of trade secrets.

The two sides gave no indication what their next step will be.

Trump is increasingly eager to reach an agreement to help lift the markets, Bloomberg reported, citing people familiar with internal White House deliberations. But just days later, President Donald Trump overruled Mnuchin by announcing plans for 25 percent tariffs on $50 billion worth of Chinese imports.

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