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18th-Aug-2018

European stocks regain composure on US-China trade talk news

By AFP, London


European stocks rebounded Thursday on news that Beijing and Washington will hold trade talks, while the Turkish lira rose after Qatar offered to invest $15 billion in Turkey.
Asian indices fell Wednesday on concerns over Turkey's crisis, but losses were capped by hopes of an end to the tit-for-tat trade war between China and the United States.
Frankfurt, London and Paris shares bounced higher, having shed more than 1.5 percent the previous day on Turkey fears and Chinese growth concerns.
"Investor risk sentiment has received a boost on two fronts," noted OANDA analyst Dean Popplewell.
"Reports that China has accepted a US invitation to trade talks in late August and news that Qatar has pledged to invest $15 billion in Turkey are helping market risk sentiment and pressuring the dollar."
Emerging market currencies staged a modest recovery after a tumultuous week for the Turkish lira, which plumbed record lows against the dollar.
The lira's plunge - ongoing for weeks - turned into a rout last Friday when US President Donald Trump tweeted that his administration was doubling aluminium and steel tariffs for Turkey.
Trump's decision was made amid a bitter row over Ankara's detention of an American pastor. But President Recep Tayyip Erdogan said Turkey was facing an "economic attack".
Wall Street wobbled Wednesday as traders fretted over possible global contagion from Turkey.