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Wall Street’s main indexes were set to rise at open on Monday as the latest round of trade talks between the world’s largest economies began in Beijing, while U.S. lawmakers attempted to hammer out a deal to avoid another government shutdown.
China struck an upbeat note on the talks and the Shanghai exchange rose more than 1 percent after a week-long Lunar New Year holiday, but a U.S. Navy mission through the disputed South China Sea weighed on sentiment.
Shares of Boeing (NYSE:BA) Inc, the largest U.S. exporter to China, gained 1.1 percent in premarket trading, while Caterpillar Inc (NYSE:CAT) climbed 0.7 percent.
“These trade talks are being viewed as a positive. There is still a lot of uncertainty but there’s this pattern of markets embracing good news a little bit more than bad news,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
Adding to the positive tone, White House senior counselor Kellyanne Conway told Fox news that Donald Trump may still meet with his Chinese counterpart Xi Jinping in the near future. However, Trump last week said he did not plan to meet with Xi before the March.