Damir Sagolj | Reuters
President Donald Trump and China’s President Xi Jinping meet business leaders at the Great Hall of the People in Beijing, China, November 9, 2017.
U.S. trade officials said in a statement they will report back to the White House for further guidance on the talks.
The meetings this week were the first between U.S. and China officials since President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce in December to the two countries’ ongoing trade war. Both countries have been engaged in a tense sparring of tariffs, targeting billions of dollars’ worth of imports in each other’s economies with levies.
Ed Yardeni, president and CIO of Yardeni Research, said China could move quickly to strike a deal with the U.S. to avoid further economic pain.
“Lately, it seems to have gotten so bad for China domestically that it may have no choice but to make a trade deal in favor of the US, which could be a boon to US and global equity markets,” Yardeni said in a note. “More evidence recently has confirmed my earlier hypothesis about China’s weakness,” he added, citing Apple’s quarterly revenue warning from last week as well as deteriorating leading indicators like purchasing managers’ indexes.
The recent tone shift around U.S.-China trade talks has helped boost stocks recently. On Tuesday, the Dow notched its first three-day winning streak since late November. Meanwhile, the S&P 500 and Nasdaq have rallied more than 10 percent since Dec. 24.
However, investors also kept an eye on the ongoing government shutdown. Ratings agency Fitch warned Wednesday it may cut the U.S.’ triple-A rating if the shutdown continues.
President Donald Trump delivered an address on immigration and border security Tuesday night, where he made his case for the proposed wall along the U.S.-Mexico border, a key sticking point inhibiting progress toward a funding deal to re-open the government.
“I think things are going to be relatively choppy, but everybody had gotten so negative on the market, specifically a lot of the FAANG names,” said Dave Lutz, head of ETF trading at JonesTrading. “But we’re all headline-trading right now. If anyone told you what’s going to happen a few months from now, they’re making stuff up.”
—CNBC’s
Ryan Browne
and
Patti Domm
contributed to this report.
from Viral News Reports http://bit.ly/2Caciij
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