Home » U.S – China Trade Talks To Conclude On Thursday

U.S – China Trade Talks To Conclude On Thursday

Michael Harris
  • October 10th 2019, 02:44
  • Last Updated: October 17th 2019, 12:41

The short and long term traders have been devising their weekly strategies in accord with the U.S – China trade negotiations. While some of them preferred to stay out of the market until the storm passes, others have been strategizing to get the most out of the expected higher volatility in the financial markets. There have been multiple speculations from the analysts and financial experts from across the world that the trade negotiations between the two parties are heading in the wrong direction. The latest development has given further strength to such claims.

Chinese Delegate Will Return To China On Thursday

While the negotiations were originally decided to be held for two days on Thursday and Friday, FOX business has recently reported that the talks have been cut short with Vice Premier Liu flying back to China on Thursday, October 10th, 2019. The negotiations are now expected to be concluded in just one day.

In a press conference at the White House, President Trump has stated that China is interested in making a deal a lot more than the United States of America. It was further revealed that a currency agreement has been proposed to China as the “first-phase” of a trade deal.

The U.S had made staunch allegations of currency manipulation on China in August of 2019. China was called on its unfair means of gaining a competitive advantage in global trade specifically with the U.S. Compared to the U.S dollar, Chinese Yuan (CNY) was devalued by 3.5% (over 7 per USD) that prompted the U.S government’s discomfort.

As per the latest report, the Trump administration may agree to the suspension of heightened tariffs next week in an event that China resumes the currency accord that was signed in the first half of the year 2019. Chinese failure to comply with the accord has been highlighted as one of the prominent reasons that fueled a trade war between the two superpowers of the world.

Officials from the White House have stated that the currency agreement can be thought of as a partial trade deal with China. Upon Chinese compliance, further negotiations will be held to discuss the principle concerns such as the likes of forced technology transfers and intellectual property (currently refused by China).

U.S Stock Futures Respond Sharply

The U.S stock indices have been responding strongly to the developments of the trade negotiations. Dow Jones Industrial Average started the week on Monday at 26,502.33. Currently trading at 26,346.07, the index has made a high of 26,646.38 for the week that was followed by a low of 26,163.68.

S&P 500 index opened on Monday at 2,944.23. Currently trading at 2,919.34, the index made a high of 2,959.03 and a low of 2,892.82 for the week.

About the author

Michael Harris
Michael Harris
I began trading in my early 20's at a local company and since then have combined my knowledge and love of content to become a news writer. I am passionate about bringing insightful articles to readers and hope to add some value to your portfolios!

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