By April Joyner
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 later in August 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 pared losses from earlier in the day.
"The news of China coming back to the negotiating table is providing relief and you are starting to see markets stabilise 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
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.
Metals prices climbed as well, though MSCI's index of emerging market stocks dipped after having edged up into positive territory earlier in the day.
MSCI's index of world stocks <.MIWD00000PUS> rose 0.7 percent. Emerging market stocks <.MSCIEF> dipped 0.2 percent a day after falling more than 20 percent from their January intraday high.
In U.S. markets, the Dow Jones Industrial Average <.DJI> rose 428.96 points, or 1.7 percent, to 25,591.37, the S&P 500 <.SPX> gained 26.08 points, or 0.93 percent, to 2,844.45 and the Nasdaq Composite <.IXIC> added 45.51 points, or 0.59 percent, to 7,819.63.
The pan-European FTSEurofirst 300 index <.FTEU3> rose 0.44 percent.
The Shanghai Composite Index <.SSEC> closed down 0.6 percent, while Hong Kong's Hang Seng index <.HSI> ended 0.8 percent lower. Hopes that China and the United States could ease trade tensions helped Chinese stocks pare losses.
In currency markets, the dollar index <.DXY> fell 0.06 percent, while the euro
The Chinese yuan
Graphic: Emerging market shares savaged by bears - https://reut.rs/2KPYGv7
Oil also recovered somewhat after Wednesday's slide, though a weakening outlook for crude demand kept prices in check. U.S. crude
U.S. Treasury yields rose on the news of U.S.-China trade talks. Benchmark 10-year notes
(Reporting by April Joyner; additional reporting by Sinéad Carew in New York, Amy Caren Daniel in Bengaluru and Marc Jones in London; Editing by Dan Grebler and Leslie Adler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Updated Date: Aug 17, 2018 02:05 AM