NZ dollar lifted as Donald Trump predicts great deal with China

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Those threats were given new life this week when three unnamed sources were cited by Bloomberg as confirming that the Trump administration would go through with tariffs on the remaining US$260 billion of imports from China if upcoming talks between the two countries' leaders did not go well.

The New Zealand dollar got a lift when markets were cheered after US President Donald Trump told Fox News that he predicts a "great deal" with China on trade.

Trump also threatened on numerous occasions to put punitive tariffs on the entirety of Chinese imports to the USA if Beijing enacted retaliatory measures in response to Washington's latest round of duties on US$200 billion of Chinese goods.

If the new duties are imposed, all imports from China would be subject to U.S. tariffs. The Russell 2000 index of smaller-company stocks gave up 6.51 points, or 0.4 percent, to 1,447.31.

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Trump's words came ahead of the highly anticipated meeting between him and Chinese President Xi Jinping at the G-20 summit in Buenos Aires, Argentina next month.

Stocks have plunged since early October and trading has been especially volatile the last few days.

Tariff "wave" the stock market gains away.

But Germany's DAX fell 0.2 percent to 11,316 and the CAC 40 in France sank 0.2 percent to 4,980 after weak eurozone growth figures.

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The Nasdaq is up 146.90 points, or 2.1 percent. The Nasdaq has dropped 13% from its August 29 record high.

The chill around China and global trade left emerging- market stocks at an 18-month low, with MSCI's index down for a sixth day in a row.

For most of this year, investors have remained hopeful that the United States and China would work out their disagreements on trade policy and that numerous tariffs would be reduced or eliminated.

"I can make a deal right now (with China)". But she said the group, representing U.S. companies doing business in China, was urging both sides to better use the time before the Trump-Xi meeting to figure out how progress can be made on substantive issues. They've been taken out an average of USD500 billion a year for many years.

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US-China Business Council senior vice president Erin Ennis said it would not be a surprise to see Trump move towards announcing more tariffs, given his repeated threats to do so.