The mood music among financial markets improved on news that the U.S. and China are due to hold lower-level trade talks this week, with market participants hopeful they might find a way to resolve an escalating tariff war.
The talks are reportedly set to take place in Washington through Tuesday and Wednesday, shortly before new U.S. charges on Chinese goods take effect. The meeting between trade officials has renewed speculation of a potential summit between President Donald Trump and Chinese President Xi Jinping in November.
In Asia, shares were up slightly overnight as the Chinese yuan rallied away from recent low levels. MSCI’s broadest index of Asia-Pacific shares, excluding Japan, gained 0.4 percent.
Back in Europe, a steadying Turkish lira helped to boost market sentiment Monday, with the currency holding around 6.0834 against the dollar in early morning deals.
Last week, sharp declines in the lira sparked fears of contagion amid a dramatic sell-off in emerging markets’ currencies and stocks. The currency has lost more than 40 percent of its value against the dollar this year.
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