Oil continues to fall; gold crosses $3,200

OIL PRICES WERE heading for their second straight weekly fall on Friday against a backdrop of investor concern over recession sparked by the burgeoning trade war between the United States and China.

- JOE CASH AND DAVID LATONA

PRESIDENT XI JINPING told Spain's prime minister on Friday that China and the European Union must join together in defending globalization and opposing "unilateral acts of bullying", in a clear swipe at US President Donald Trump's tariff policies.

Xi, in his first public comments on the issue since Trump launched his tariff offensive last week, said there could be 'no winners' in any trade war, and he said the EU had a key role to play in ensuring global economic stability.

Spanish Prime Minister Pedro Sanchez said China and the United States needed to hold talks to defuse the situation, and he also called for a more balanced relationship between Beijing and the 27-nation EU, which has its own trade issues with China.

"China has always regarded the EU as an important pole in a multipolar world, and is one of the major countries firmly supporting the EU's unity and growth," Xi told Sanchez during their talks in Beijing, according to the Xinhua news agency.

"China and the EU should fulfill their international responsibilities, jointly safeguard the trend of economic globalization and the international trade environment, and jointly oppose unilateral acts of bullying," Xi added.

In a stunning reversal, Trump said on Wednesday he would temporarily lower hefty duties he had just imposed on dozens of countries including the EU-27, for 90 days.