G20: US\, Canada\, Mexico sign trade pact; focus now on Xi/Trump meeting

Tensions ballooned in Argentina - even before the leaders of the two largest economies were due to meet to thrash out their differences.

There's much to play for at this year's G20 summit Including a possible trade reconciliation between China and the U.S. Before heading to Buenos Aires, Donald Trump said he was open to a deal but that he also didn't know whether he wanted one.

(SOUNDBITE) (English) WORLD FIRST CHIEF ECONOMIST, JEREMY THOMPSON-COOK, SAYING: "So the atmosphere's not great at the moment.

Any time you get politicians in a room there's obviously the propensity to agree and disagree.

But when you're dealing with Donald Trump on trade he is he is obviously pulling the message back towards his domestic base, and that is being an antagonistic trade president".

This year, the U.S. levied duties of between 10 and 25 percent on $250 billion of Chinese goods.

Calling it a punishment on what it said was China's unfair trade practices.

China responded with tariffs of its own.

It said on Friday it was hopeful of a reconciliation.

(SOUNDBITE) (Mandarin) CHINESE FOREIGN MINISTRY SPOKESMAN, GENG SHUANG, SAYING: "We hope the US can show sincerity and meet China half way, to promote a proposal that both countries can accept." If that falls through, one bright spot for Trump could be the signing of a revised U.S.-Mexico-Canada trade pact.

(SOUNDBITE) (English) WORLD FIRST CHIEF ECONOMIST, JEREMY THOMPSON-COOK, SAYING: "It's the political storytelling of the Trump administration to make sure that they are seen as tough on trade domestically, to be able to shore up their base ahead of their midterms." Investors were jittery ahead of the Xi Trump meeting.

The pan-European STOXX 600 down 0.5 percent in early trading.

The G20 first met in 2008 in the wake of the financial crisis.

Ten years on, it's hoping to avoid a new one.