FBM KLCI up as markets cheer ongoing China-US trade talks

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KUALA LUMPUR (May 15): The FBM KLCI opened higher today following overnight US share gains after China and the US' indicated talks are ongoing to find a solution to the trade dispute between both countries. 

At 9am, the KLCI opened up 2.24 points at 1,601.43. At 9:09am, the KLCI rose 4.06 points to 1,603.25 although investors were still mindful of China-US trade war uncertainties. 
"Market volatility should remain elevated given uncertainty over the repercussions from the expanding US-China trade war, and pending cues
from either party to hopefully lessen the trade tensions," TA Securities Holdings Bhd wrote in a note today.

Overnight in the US, Reuters reported that US stocks on Tuesday reclaimed some of the ground lost in the prior day's steep sell-off, with tariff-sensitive technology stocks leading the S&P 500 and the Nasdaq higher as investors were heartened by a tonal shift in US-China trade rhetoric. It was reported that the Dow Jones Industrial Average rose 207.06 points or 0.82% to close at 25,532.05, the S&P 500 gained 22.54 points or 0.8% to 2,834.41, and the Nasdaq Composite added 87.47 points, or 1.14% to 7,734.49.

According to Reuters, investors' nerves were calmed after US President Donald Trump referred to the escalating trade war with China as "a little squabble," and added, "We have a good dialogue going." 

It was reported that Beijing echoed that sentiment. A Chinese Foreign Ministry spokesman was quoted as telling reporters: "My understanding is that China and the United States have agreed to continue pursuing relevant discussions."