Markets could “pop” as China set to resume trade talks with US

Markets were mixed on Thursday.

The S&P 500 rose 0.8 percent, the STOXX Europe 600 rose 0.5 percent while the Nikkei 225 fell less than 0.1 percent.

Markets were supported by news that China will send a delegation to the US later this month to resume trade talks as well as signs of stabilisation of the Turkish lira.

Wharton School finance professor Jeremy Siegel said on CNBC on Thursday: “If we could get resolution with China, this market could pop 10 percent.”

However, he also said that implementation of the US$200 billion worth of additional tariffs that President Donald Trump has threatened could result in a “20 percent drop” in stocks.