U.S. Signals China Trade Talks in Final, Hardest Steps to a Deal By Bloomberg



(Bloomberg) — Two top economic advisers of President Donald Trump signaled talks with China to reach the first phase of a broad trade agreement are entering the final stages when the most contentious and complex issues are debated, with no guarantee still that another breakdown will be averted.

White House economic adviser Larry Kudlow told reporters late Thursday in Washington that “we are coming down to the short strokes” and are “in communication with them every single day.” Commerce Secretary Wilbur Ross, speaking Friday on Fox Business Network, confirmed there will be a high-level call today, adding that there’ll be a deal “in all likelihood.”

As U.S. stock futures advanced on optimism for the world’s largest economies, both officials added caveats, with Kudlow acknowledging a deal was close though “not done yet” and Ross saying “the devil is always in the details and we’re down to the last details now.”

Today’s call of top trade negotiations from both countries is a sign of progress. Still, the last stages of trade agreements are often where talks break down, and Trump still hasn’t publicly indicated his approval. The two sides were close to concluding a pact about six months ago, only for the U.S. to claim that China backed away from verbal commitments when the time came to sign the deal.

“You don’t really have the deal on anything, until you have the deal on everything,” Ross said. “So it’s not surprising that at the very last minute pieces are bouncing around. But I think the main thing is what the president said at the rally last night: China wants to make a deal. We think we’d like to make a deal if it’s the right deal — this will get made in all likelihood.”

Ross described phase one as “relatively limited in its scope. And what’s really being debated is how much limitation will there be on the scope of phase one relative to phase two or maybe phase three.”

The two sides have held working-level video conferences in recent days focused on issues ranging from the details and time line of Chinese purchases of U.S. agricultural goods such as pork and soybeans to commitments to curtail theft of intellectual property that Trump is demanding from China, according to people familiar with the discussions.

A U.S. demand that China spell out how it plans to reach as much as $50 billion in agricultural imports annually has been one sticking point as have discussions over what action the U.S. will take to roll back tariffs in return for a phase one deal, the people said. China has reiterated its position that removing existing tariffs is a precondition of reaching a deal.

Still, both countries have sent signals that they are intent on an agreement. China has resumed significant purchases of U.S. farm exports since Trump first announced plans for the phase one deal Oct. 11. On Thursday, Beijing also lifted a ban on American poultry that began in 2015, after the U.S. Department of Agriculture made a similar decision to allow Chinese poultry into the U.S.

“This is great news for both America’s farmers and China’s consumers,” Robert Lighthizer, the U.S. trade representative leading the discussions with China, said in a statement after the lifting of the Chinese ban was announced. The government estimates American producers will be able to export more than $1 billion worth of poultry to China annually, he said.

Separately, Kudlow said the president had not yet made a decision on whether to impose — or delay, as many expect — new auto tariffs on imported cars and parts from the European Union. The president received a report from Lighthizer’s office and “he is considering it”, Kudlow said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



China holds in-depth talks with U.S. on phase one of trade deal


BEIJING (Reuters) – China and the United States are holding in-depth discussions on a “phase one” trade agreement, and cancelling tariffs is an important condition to reach such a deal, the Chinese commerce ministry said on Thursday.

FILE PHOTO: Chinese and U.S. flags flutter near The Bund, before U.S. trade delegation meet their Chinese counterparts for talks in Shanghai, China July 30, 2019. REUTERS/Aly Song

The degree of tariff cancellation should fully reflect the importance of a phase one agreement, ministry spokesman Gao Feng told a regular briefing.

On Tuesday, U.S. President Donald Trump said a trade deal with China was “close,” but offered no details and warned that he would raise tariffs “substantially” on Chinese goods without such a deal.

Trump’s threat was a reference to previously announced tariffs of 15% on about $156 billion of Chinese consumer goods set to take effect on Dec. 15, according to trade experts and a source close to the White House.

Those tariffs would hit video game consoles, computer monitors, Christmas decorations and items given as gifts during the approaching festive season.

Last week, White House advisers said the Dec. 15 tariffs would probably be averted if a phase one trade deal was reached.

Highlighting the volatile state of play in the 16-month long trade war, officials of both sides had said last week they had a deal to roll back tariffs, only to have Trump deny any deal had been agreed.

Trump has used tariffs on billions of dollars of Chinese goods as his primary weapon in the trade war, which is aimed at forcing major changes in China’s trade and industrial policies.

The United States is demanding that China end the theft and forced transfer of American intellectual property and curb subsidies to state-owned enterprises, while granting U.S. companies more access to China’s markets.

Trump also wants China to vastly increase its purchases of U.S. farm products.

China and the United States were on the brink of a deal in May when Beijing backed away, prompting Trump to raise tariff rates and embark on new rounds of punitive duties.

If an interim deal is finished and signed, it is widely expected to include a U.S. pledge to scrap tariffs scheduled for Dec. 15.

But China was also seeking cancellation of other U.S. tariffs put in place since July 2018.

Gao said last week that both countries must simultaneously cancel some tariffs on each other’s goods to strike a phase one pact.

Reporting by Gabriel Crossley; Writing by Stella Qiu and Ryan Woo; Editing by Clarence Fernandez



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Oil prices gain as market awaits signals on U.S.-China trade talks By Reuters


© Reuters. A pump jack on a lease owned by Parsley Energy operates in the Permian Basin near Midland

By Aaron Sheldrick

TOKYO (Reuters) – Oil prices rose on Tuesday, reversing early losses on hopes that U.S. President Donald Trump may signal progress on trade talks with China in a speech later in the day.

futures were up 31 cents, or 0.5%, at $62.49 a barrel by 0644 GMT, after dipping to as low as $61.90 earlier in the day.

U.S. West Texas Intermediate (WTI) crude was up 23 cents, or 0.4%, at $57.09 a barrel, having fallen to $56.55.

Worries about the impact on oil demand from the fallout of the 16-month U.S.-China trade war, which has weighed on global economic growth, sent prices lower on Monday.

Trump said on Saturday that talks with China were moving along “very nicely” but the United States would only make a deal if it was the right one for Washington. He also there had been incorrect reporting about U.S. willingness to lift tariffs.

Trump speaks to the Economic Club of New York later on Tuesday, and markets will be keen for any update on the talks.

“Positive commentary about a possible U.S. and China interim trade deal certainly helps, but the fundamentals are supportive,” said Virendra Chauhan, Oil Analyst at Energy Aspects in Singapore, pointing to an improved demand outlook.

“Six million barrels per day of refining capacity is due to return from turnarounds across November and December,” he said.

On the supply side, Goldman Sachs (NYSE:) also cut its 2020 forecast for growth in U.S. oil production, which has surged in recent years.

The investment bank cut its growth forecast for next year by 100,000 barrels per day (bpd) to 600,000 bpd over 2019.

“We expect U.S. oil growth to decelerate into 2020 as many companies look to balance growth with capex,” Goldman Sachs said.

Elsewhere, U.S. data showed that crude inventories at Cushing, the delivery point for WTI, fell about 1.2 million barrels in the week to Nov. 8, traders said, citing market intelligence firm Genscape.

Cushing inventories had grown for five weeks in a row through Nov. 1, according to government data.

Demand growth may pick up in 2020 after a year of dashed expectations amid the U.S.-China trade war, Fitch Solutions Macro Research analysts said in a new report.

“Our data show that 2019 will mark the nadir of oil demand growth over the next five years,” Fitch Solutions said.

“We forecast demand to (grow) by around 0.5% this year, rising to 0.8% in 2020,” the report said, although it added that “trade and political risks remain extremely elevated.”



Dollar holds gains on progress in U.S.-China trade talks By Reuters



By Stanley White

TOKYO (Reuters) – The dollar held on to its gains versus the yen and the Swiss franc on Friday as a China-U.S. agreement to roll back tariffs on each others’ goods supported riskier assets, even as some reports suggest a preliminary trade pact is far from a done deal.

The yen also nursed losses against the euro and the Australian dollar as progress in resolving a 16-month long trade war between the world’s two largest economies weakened demand for safe havens.

China and the United States have agreed to roll back tariffs on each others’ goods in a “phase one” trade deal if it is completed, officials from both sides said on Thursday.

However, there is still some scepticism about a trade deal as officials inside and outside the White House have bristled at the notion of giving up punitive tariffs.

Muddying the water further, White House spokeswoman Stephanie Grisham told Fox News Channel in an interview on Thursday that the United States is “very, very optimistic” about reaching a trade deal with China soon.

Sterling traded near a two-week low after two Bank of England unexpectedly voted to cut interest rates due to uncertainties posed by Britain’s fraught exit from the European Union.

The remaining seven policy makers on the board voted to keep policy unchanged, but Governor Mark Carney and others said they would consider a cut in the future.

On the whole, sentiment is likely to remain supportive for the dollar, equities and other risky assets as a de-escalation in the U.S.-China trade war removes a huge risk to the global economic outlook.

The () against a basket of six major currencies stood at 98.136, up 1% this week.

“The overall tone is risk-on, which is a positive for the dollar and a negative for the yen,” said Tsutomu Soma, general manager of fixed income business solutions at SBI Securities Co in Tokyo.

“We can see this in other markets, which is why stocks are so strong. We still need to figure out when the United States and China will sign this deal, but the mood so far is supportive for markets.”

Trump has used tariffs on billions of dollars of Chinese goods as his primary weapon in a trade war that has hurt global growth and rattled financial markets in the past year.

The dollar held steady at 109.34 yen in Asia on Friday, close to a five-month high, and is headed for a 1.1% gain for the week.

The greenback edged higher to 0.9953 Swiss franc, on course for a 1% gain.

The pound traded a $1.2815, close to the lowest since Oct. 24. Cable was on course for a 1% decline this week.

Economists polled by Reuters had expected the BoE to vote unanimously to keep Bank Rate at 0.75%.

The announcement of the 7-2 split weighed on sterling as market odds on a cut next year rose as high as 80%.

To date, the BoE has resisted following the U.S. Federal Reserve and the European Central Bank in cutting its main interest rate, but the outcome of Thursday’s meeting suggests the BoE is poised to change its stance on monetary policy.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Trump says China trade talks moving along nicely, but deal has to be right By Reuters


© Reuters. Containers are seen at the Yangshan Deep Water Port in Shanghai

WASHINGTON (Reuters) – U.S. President Donald Trump said on Saturday that trade talks with China were moving along “very nicely,” but the United States would only make a deal with Beijing if it was the right deal for America.

Trump told reporters at Joint Base Andrews before leaving for a visit to Tuscaloosa, Alabama, that the talks had moved more slowly than he would have liked, but China wanted a deal more than he did.

“The trade talks with China are moving along, I think, very nicely and if we make the deal that we want it will be a great deal and if it’s not a great deal, I won’t make it,” he said.

“I’d like to make a deal, but it’s got to be the right deal,” he said.

“China very much wants to make a deal,” Trump added. “They’re having the worst year they’ve had in 57 years. Their supply chain is all broken, like an egg, they want to make a deal, perhaps they have to make a deal, I don’t know, I don’t care, that’s up to them.”

Trump said there had been incorrect reporting about U.S. willingness to lift tariffs, which he said had brought in tens of billions of dollars for the United States and soon “literally hundreds of billions of dollars.”

“There was a lot of incorrect reporting, but you will see what I’m going to be doing,” he said.

“There’s a difference on tariffs, but we can always get tariffs,” he said.

“The level of tariff lift is incorrect,” Trump said in reference to news reports. He did not elaborate.

Officials from both countries said on Thursday that China and the United States had agreed to roll back tariffs already in place on each others’ goods in a “phase one” trade deal to end a damaging trade war, but the idea has been met with stiff opposition within some quarters of the Trump administration.

On Friday, Trump, in comments that hit stock prices and the dollar, said he had not agreed to a tariff rollback. “I haven’t agreed to anything,” he told reporters then.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Exclusive: Failed Exxon talks left Petrobras stranded for auctions



By Marta Nogueira, Gram Slattery and Ron Bousso

RIO DE JANEIRO/LONDON (Reuters) – As the weeks ticked down to Brazil’s biggest-ever oil auction, state-run Petrobras held increasingly frantic talks to find potential partners, with the heaviest blow coming when major Exxon Mobil Corp (N:) pulled out days before, according to six people familiar with the matter.

While many firms were far from ready to take on enormous signing fees and investments, Exxon came closest but ultimately failed to reach acceptable terms for the blockbuster bidding round, according to four of the sources, who requested anonymity to discuss confidential negotiations.

With that, the state firm formally known as Petroleo Brasileiro SA (SA:) was left to anchor an embarrassingly empty bidding round on Wednesday with token support from Chinese firms.

The big Brazilian round was the latest offshore auction this year to undershoot expectations, hurt by competition from shale oil and other unconventional sources as well as lower demand forecasts.

Most of the talks to form consortia between Petrobras and other oil firms were and brief and informal, according to the sources. But negotiations with Exxon were relatively advanced, offering the major a large stake in the coveted Buzios oil block until talks fell apart in the last few weeks, sources said.

The ill-fated talks show how even global firms that were seriously interested in the landmark “transfer-of-rights” (TOR) auction on Wednesday could not accept the terms of a required partnership with Petrobras – long seen as a bottleneck to the development of Brazil’s most promising deepwater resources.

The proposed Exxon-Petrobras consortium, which would have included the two Chinese state firms that ultimately bought 10% of Buzios block’ rights, CNODC and CNOOC (HK:), would have given a seal of private-sector approval to the landmark auction.

Instead the lack of major partners revealed how the powerful role of Petrobras in the so-called “pre-salt polygon,” along with complicated development terms and expensive signing fees discourage interest, even among majors with large purchasing power, in one of the world’s biggest proven oil reserves.

Exxon and Petrobras did not respond to requests for comment.

CNOOC and CNPC did not immediately respond to e-mails sent outside business hours.

https://graphics.reuters.com/BRAZIL-OIL/0100B2JV1WF/oil-blocks.jpg

DIFFERENCES EMERGE

Much remains unclear as to why the talks did not bear fruit.

One source said the Petrobras and Exxon disagreed over the way billions of dollars would be paid to the Brazilian firm in compensation for prior investments. Others cited differences over how much to invest in platforms to ramp up production.

Exxon was interested in taking over operations at the field, a non-starter for Petrobras, according to one of the sources.

All sources agreed that the complicated nature of the TOR auction played a major role in keeping the talks from reaching the finish line. This has been confirmed by Brazilian authorities to explain why the country failed to catch money from foreign oil companies.

“It’s an awful system,” Economy Minister Paulo Guedes said on Thursday. “You have to go through many layers of negotiations just to get to the oil.”

Due to an agreement signed between Petrobras and the Brazilian government in 2010, the state firm already has rights to develop up to 5 billion barrels of oil in the TOR area. The Wednesday auction concerned oil in the TOR area in excess of what Petrobras had already been promised.

As a result, any winning member of a consortium would have needed to bang out a complex deal reconciling itself with the existing claims of Petrobras in the region. Brazil’s government would then have needed to approve the deal.

WEAK COMPETITION

In the end, the state-run company was nearly alone in submitting minimum bids for two of the four areas in the TOR bidding round, which officials hoped would cement Brazil’s ascendance as Latin America’s undisputed oil powerhouse.

Petrobras won Itapu, the smallest block up for grabs, with a solo offer. Sepia and Atapu, the second and third largest blocks respectively, received no bids.

Had the government sold off all areas, it would have reaped some 106.5 billion reais ($25.8 billion) in signing bonuses. Instead Brazil got just under 70 billion reais.

The following day, Petrobras was also almost completely alone when bidding for the largest of five oil blocks offered at the country’s sixth pre-salt bidding round, the Aram area. China’s CNODC again accompanied the state-run company by committing to a 20% stake.

The results of both rounds were widely seen as a disappointment, as no private firms placed bids for fields that are known to hold billions of barrels of untapped crude.

Economy Minister Guedes told Reuters on Friday that the week’s auctions were a “condemnation” of the production-sharing system Brazil uses in the pre-salt polygon, adding that the country needs to shift toward a concession model.

Following the results, Brazilian Mines and Energy Minister Bento Albuquerque said the government had learned a lesson, and would adjust the rules of any future auction. That could involve lowering the minimum signing bonuses required from bidders, among other parameters, he said.

“We’re evaluating the whole process, and we’re certain that we’re going to correct it,” Albuquerque told Reuters.



As deadline looms, WTO fish subsidy talks get new Colombian chief By Reuters


© Reuters. FILE PHOTO: The World Trade Organization (WTO) headquarters are pictured in Geneva

By Emma Farge

GENEVA (Reuters) – World Trade Organization (WTO) member states agreed on Friday to a new chair for talks to end harmful fishing subsidies, though an NGO said it would still take a “Herculean” effort to reach a deal before an end-December deadline.

The decision came in Geneva at the penultimate scheduled meeting ahead of the deadline the WTO has set itself to end billions of dollars in subsidies that are leading to massive overfishing and depletion of stocks.

The U.N. Special Envoy for the Ocean Peter Thomson last month called it “insanity” and said money governments spend subsidising fishing should be directed elsewhere.

The closed-door meetings in Geneva are the biggest ongoing negotiations within the WTO and delegates say the credibility of the institution, which is also facing major challenges within its top court, is at stake as well as the future of fish stocks.

Ending months of wrangling over leadership that has left the talks stuck in technical discussions and petty disagreements, a Geneva trade official said delegates agreed on Friday to appoint Colombia’s Ambassador Santiago Wills.

“The new chair intends to convene heads of delegation as soon as possible to seek political guidance on how to use the remaining time in 2019,” the official said.

But some delegates were deeply skeptical, with one saying a December deal would never happen.

“Nobody is even talking about December anymore,” he added.

In another sign the deadline had been abandoned, the Philippines’ representative spoke of aiming for success at the next ministerial conference, due in June in Kazakhstan.

A paper published by Marine Policy in September estimated global subsidies at $35.4 billion in 2018, although not all of those are the harmful ones targeted by the WTO.

China, the European Union, the United States, South Korea and Japan are the top five subsidizers.

Campaigners warn that some fish stocks are at risk of collapse and say a timely agreement on ending harmful subsidies would help stop the trend. Posters with schools of silver fish have been pasted onto Geneva buses that pass in front of the WTO headquarters and British naturalist Sir David Attenborough released a video urging action last month.

“It will take a Herculean effort to get an agreement by the end of December,” said Isabel Jarrett from NGO The Pew Charitable Trusts, which sponsored the posters.

“But if governments are serious about slaying the hydra of harmful fisheries subsidies, protecting the oceans and revitalizing multilateralism, now is the moment for world leaders to lean in and invigorate negotiations.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil up Almost 3% on Upbeat U.S. Jobs, Trade Talks By Investing.com


© Reuters.

Investing.com – Oil prices surged almost 3% on Friday on stellar U.S. jobs growth for October and a report that China has reached a consensus with the White House on core concerns in their trade war.

The rally came despite suggestions by some analysts that increases in production from the U.S. and OPEC may have offset the upside potential for oil prices.

, the benchmark for New York-traded crude, settled up $2.02, or 3.7%, at $56.20 per barrel.

, the London-traded global gauge for oil, closed the regular U.S. trading session up $2.07, or 3.5%, at $61.69.

U.S. nonfarm payrolls rose by 128,000, compared with expectations for a rise of 89,000 according to forecasts compiled by Investing.com. September’s hiring was revised up to 180,000 from an initially-reported 136,000.

Wall Street’s hit record highs on the jobs report, adding to the bullish fervor across markets, including oil.

The rally was heightened by media reports out of Beijing that China had reached consensus with the U.S. in principle on issues related to a trade deal the two sides were negotiating.

China’s Vice Premier Liu He had a phone call with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Friday where the two sides conducted “serious and constructive” discussions on “core” trade points. They also talked about arrangements on the next consultation, CNBC said in a Beijing-datelined report.

“I guess the fact that the announcement came out of China has given the story more credibility than it might have had it been a White House announcement,” said John Kilduff, founding partner at New Yorks energy hedge fund Again Capital.

“But a 3% rally, if you ask me, seems a little generous under the circumstances, even with the jobs numbers we’ve had,” he added. “So, it’s very likely that we’ll give back some of these on Monday as the US-China deal is not a done deal yet, regardless what both sides want you to believe.”

U.S. oil production surged by almost 600,000 barrels per day (bpd) in August, government data published Thursday showed, hitting a record of 12.4 million. The increase was largely due to a 30% surge in Gulf of Mexico output.

Meanwhile, a Reuters survey on OPEC production showed production rose by 690,000 bpd in October. That brought the Middle East-dominated group’s total supply back up to 29.59 million bpd.

“This latest ramp up in OPEC and U.S. supply extinguished any remaining pockets of upside potential,” Stephen Brennock, oil analyst at PVM Oil Associates, said in a research note published Friday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Gold Clings to $1,500 Despite U.S. Jobs, Trade Talks Optimism By Investing.com


© Reuters.

Investing.com – Stellar U.S. jobs growth for October and high-level progress apparently in China-U.S. trade talks whetted investors’ appetite for risk on Friday and weakened their inclination to hold safe havens. Yet gold held to its $1,500 perch, proving few were willing to abandon the yellow metal.

for December delivery on COMEX settled down $3.40, or 0.2%, at $1,511.40 per ounce. It rose 1.2% in the previous session on reports of renewed troubles in U.S.-China negotiations. But it was back in the green lane in post-settlement trade, rising a modest 15 cents to $1,514.95 by 2:45 PM ET (18:45 GMT).

, which tracks live trades in bullion, was up 8 cents at $1,512.70.

Gold’s resilience above the $1,500 level surprised some market participants who had expected the yellow metal to tumble sharply after the Federal Reserve all but indicated an end to further rate cuts after Wednesday’s third 25-basis-point reduction since July.

TD Securities, however, said in a note that many investors still needed a hedge against stock market risks and the potential for rate cuts continuing in 2020.

“It is likely the majority of investors have opted to hold onto their precious metal exposure as increased data dependency and persistent inflation weakness leaves the door open for further cuts into 2020,” the brokerage said.

“As the outlook becomes more data dependent moving forward, we expect the yellow metal to be fairly volatile on either side of $1,500/oz, until a trend of weaker data sparks further cuts in 2020,” it added.

Gold prices initially dipped after the U.S. Labor Department reported that nonfarm payrolls rose by 128,000 in October, compared with expectations for a rise of 89,000 according to forecasts compiled by Investing.com. September’s hiring was revised up to 180,000 from an initially-reported 136,000.

Wall Street’s index hit record intraday and closing highs on the jobs report, tamping down the play in safe havens .

The risk rally was also heightened later by a government statement out of China that Beijing had reached consensus with the U.S. in principle on issues related to a trade deal the two sides were negotiating.

China’s Vice Premier Liu He had a phone call with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Friday where the two sides conducted “serious and constructive” discussions on “core” trade points, while discussing arrangements on the next consultation, the statement said.

For the week, the December gold contract was up 0.5%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Argentina braced for new round of debt talks with markets stalled By Reuters


© Reuters. People walk past a screen showing currency exchange rates at a currency exchange shop in Buenos Aires

By Cassandra Garrison

BUENOS AIRES (Reuters) – Argentine markets held steady on Friday morning at the end of the first business week since voters chose a new left-wing government, as investors watched for signs about future economic policy and plans for crunch debt talks with creditors.

With few signals from President-elect Alberto Fernandez, the country’s peso currency and bonds have been in limbo, while international holders of Argentine debt have been in Buenos Aires for talks amid fears of default.

In a playful moment on Friday, Guillermo Nielsen, a key economic advisor to Fernandez who previously led fraught negotiations with Argentina’s creditors in 2005, tweeted a photo from his office alongside a major German investor.

“Deja vu? Estefan Engelsberger in my office now,” Nielsen tweeted, referring to an investor who had led a group of European creditors in previous talks, and became well enough known to have his own cartoon character in Argentine newspaper Clarin.

Nielsen led the debt talks under the administration of former President Nestor Kirchner and is now an economic adviser to Fernandez. He is expected to play some role negotiating the restructuring of some $100 billion in sovereign debt.

In an interview published on Friday with Argentine news website Infobae, Englesberger said he was here to offer his help to the Fernandez government in upcoming negotiations with the International Monetary Fund, which agreed to a $57 billion financing program with Argentina in 2018.

In the markets, Argentina’s peso edged down to close at 59.745 per dollar, capping off a mostly steady week and even netting a small gain for the week under stricter currency controls and heavy central bank invention to steady the rickety currency.

The black market peso was 2.22% stronger at the close, to 67.5 per dollar, traders said.

Fernandez, who has named a transition team but not yet his key picks for top economic posts, was scheduled to travel to Mexico on Friday and return next week, in his first foreign trip as president-elect.

He defeated business-friendly President Mauricio Macri in an election on Sunday to set Argentina back on a left-wing path.

Argentina’s central bank was also set to auction another $50 million at a rate of 59.99 pesos per dollar, traders said on Friday. The central bank has been draining its foreign currency reserves with regular interventions in the foreign exchange market to defend the peso since Fernandez heavily won an Aug. 11 primary election.

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