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China, US agree to roll back tariffs; global shares advance

China and US agree to roll back tariffs

The United States and China have agreed to eliminate some tariffs imposed by the parties on each other at various stages of the trade agreement, according to a representative for the Chinese Ministry of Commerce Gao Feng.

Gao Feng said the number of cancelled tariffs will be determined in the first phase in the upcoming weeks, depending on the terms of the agreement, without giving further details, he added, the two countries have been engaged in “constructive talks” over the past two weeks.

If the United States confirms that news, there will be a road map for signing the agreement and ending the trade war, which has cast a heavy impact on the world economy, the main Chinese demand from the beginning of the negotiations was the withdrawal of punitive tariffs imposed by the Trump administration.

Both sides will continue to negotiate about where and when the “phase 1” of the trade deal will be signed, without any identifications about further information regarding this topic.

Global shares advance

The upbeat updates about nearing a trade deal cheered investors and boosted demand on risky asset, thereby pushing global share higher.

In Asia, Chinese index CSI 300 index surged 0.18 percent to finish at 3,991.87 to recover some of its losses made last session, Japan’s Nikkei 225 index closed 0.11 percent up at 23,330.32 to stay close to the highest level in 13 months.

Australia’s S&P/ASX 200 rose 1 percent at 6,726.63, while Hong Kong Hang Seng index surged 0.57 percent at 27,847.23.

European stocks traded hit a four-week high, where the Euro Stoxx 600 index was 0.39 percent up at 406.70. Germany's DAX also rose to 13,280.97 points, after augmenting 0.76 percent.

Britain’s FTSE continued its series of gains on the European stock market today, as it ascended 0.34 percent at 7,421.30 points.

On the other hand, precious gold retreated by 0.30 percent at 1,488.55 after positive news about the trade deal, which reduced the appeal of the metal as safe harbor.  

Meanwhile, the dollar index, which measures the performance of major six currencies against the U.S dollar, slumped by 0.04 percent at 97.72.

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