“The bigger question for markets is whether these actions jeopardise the US-China trade talks on August 15 and markets will be looking closely for any Chinese retaliation,” said Tapas Strickland, director of markets & economics at National Australia Bank.
“The running assumption in markets has been President Trump needed the phase one deal to succeed, as much as China, this side of the November elections…
“At the same time President Trump is running a hard China line into the elections.”
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5.53am update: Oil prices rise 1 percent on Saudi Aramco’s optimism
Oil prices climbed on Monday, supported by Saudi optimism on Asian demand and an Iraqi pledge to deepen supply cuts, although uncertainty over a deal to shore up the US economic recovery capped gains.
US West Texas Intermediate (WTI) crude CLc1 futures rose 50 cents, or 1.2 percent, to $ 41.72 a barrel at 0301 GMT, while Brent crude LCOc1 futures were up 40 cents, or 0.9 percent, at $ 44.80 a barrel.
Both benchmark contracts fell on Friday, hurt by demand concerns, but Brent still ended the week up 2.5 percent, with WTI up 2.4 percent.
“Comments from the weekend from Aramco are the driver at the moment,” said Michael McCarthy, market strategist at CMC Markets and Stockbroking.
Saudi Arabian Aramco’s Chief Executive Amin Nasser said on Sunday he sees oil demand rebounding in Asia as economies gradually open up after the easing of coronavirus lockdowns.