Global stocks scale one-week high on U.S, China trade hopes

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World stocks rose to a one-week high on trade hopes between China and the United States on Friday.

The mood lifted after U.S. President Donald Trump said some trade discussions were taking place with China on Thursday, with more talks scheduled.

China’s commerce ministry also said a September round of meetings was being discussed by the two sides, but added it was important for Washington to cancel a tariff increase.

The MSCI All-Country World Index climbed 0.3% but is on track for a near 3% decline in August – only the second month the benchmark has spent in the red this year. It is the weakest August for the index since 2015.

European stocks on Friday extended the previous session’s gains, with the pan-European STOXX 600 index up 0.3% to trade at a fresh one-month high.

“The trade war seesaw has certainly moved back in favor of riskier assets for now, with Trump and China supposedly holding a call yesterday,” said Deutsche Bank strategist Jim Reid.

Recent economic data has also pointed to a global growth slowdown with business investment, manufacturing activity and exports all going south across major economies.

Investors were focused on a string of economic releases due over the weekend including China’s official manufacturing survey, which would provide a good gauge of the real impact from the China-U.S. trade war.

Peace PIAK