Stock markets appered poised to rebound Thursday as China softened its tone regarding the trade war with the U.S. a day after Wall Street suffered its worst session of the year.
The Dow Jones Industrial Average opened higher after plunging 800 points Wednesday amid warning signs of an impending recession. Yield curves on the U.S. and U.K. bonds inverted Wednesday for the first time in a decade, a development typically considered to be a bad omen for what lies ahead in the next year or two. In the U.S., inversions have preceded almost every recession since the 1950s.
The down day continued a volatile week on Wall Street that saw optimism in the markets Tuesday after the Office of the U.S. Trade Representative announced that some tariffs on Chinese goods would be delayed until after this year’s holiday shopping season.
China’s Customs Tariff Commission of the State Council initially suggested Thursday that the move would not be enough to forestall trade retaliation. But China’s Foreign Ministry spokeswoman Hua Chunying said in a press conference later in the day that Chinese officials hope the U.S. and China can reach an acceptable deal in trade talks.
“China holds a consistent and clear position on China-U.S. trade talks,” Hua said. “We hope the U.S. can work in concert with China to implement the two presidents’ consensus that was reached in Osaka, and to work out a mutually acceptable solution through equal-footed dialogue and consultation with mutual respect.”