U. S. stocks and emerging market currencies rebounded on Thursday after China said it will hold trade talks with the United States this month and Turkey’s lira continued its recovery.
NEW YORK (Reuters) – U. S. stocks and emerging market currencies rebounded on Thursday after China said it will hold trade talks with the United States this month and Turkey’s lira continued its recovery.
China said that a delegation led by its vice commerce minister would travel to the United States for talks on Aug. 21 and 22, raising hopes that Beijing and Washington may resolve the escalating tariff war that has roiled financial markets since early March.
The Chinese yuan recovered from its weakest level since January 2017, and the dollar moved slightly lower.
“The news of China coming back to the negotiating table is providing relief and you are starting to see markets stabilize a little bit,” said Shawn Cruz, manager of trader strategy at TD Ameritrade in Chicago.
The Turkish lira built upon Wednesday’s gains, when Qatar pledged to invest $15 billion in Turkey. Other emerging market currencies, such as Brazil’s real and Mexico’s peso, also rose.
The Turkish lira TRY= rose 2.9 percent to 5.7941 per dollar.
On Thursday, Turkish Finance Minister Berat Albayrak assured international investors on a conference call that the country would emerge stronger from its currency crisis and that its banks were healthy.
“The trade talks and the back and forth on Turkey is really going to be the stuff everybody’s watching,” said Blake Gwynn, an interest rate strategist at NatWest Markets in Stamford, Connecticut.
