As investors digested the cutting-edge reports surrounding the US-China trade battles, stocks have taken a downward trend. The Dow Jones Industrial Average was down 0.2 percent at 27,766.29. The S&P 500 immersed 0.16 percent to 3,103.54, whereas the NASDAQ Composite heaved back 0.2 percent to 8,506.21. For Dow Jones, Thursday was the third straight day of losses, one of its extended losing streaks since August. The S&P 500 displayed its first three-day slip ever since September. Boeing and Procter & Gamble became the significant losers in the Dow, dropping more than 1 percent each.
Randy Fredrick said that China and the US have no idea what they need on a trade deal. Fredrick is Charles Schwab’s vice president of derivatives and trading. He says the two country’s trend is complicated as they change every day. They tend to close a deal today, and then it goes off, which confuses the market. President Trump has been especially difficult when it comes to striking a deal between Washington and Beijing.
The market stands in a swamp, says Fredrick, on the assumption that these rumors continue to spread. According to the Wall Street Journal’s report, there was an alleged phone call made the previous week. Reports say that Liu He, Chinese Vice Premier, invited Robert Lighthizer, US Trade Representative, to Beijing to sit down for more negotiations. In the talks also is Steven Mnuchin, Treasury Secretary. It’s not sure whether Washington negotiators had accepted Liu’s invite. Yet, the WSJ’s statement said that US trade executives were eager to meet with their Chinese colleagues. Meanwhile, both countries, according to the South China Morning Post, are on the approach of reaching an agreement. They cited a foundation adjacent to the Trump administration.
The reports follow Washington legislation threats to Pyongyang to derail trade debates amid the globe’s major economies. The US House of Representatives on Wednesday approved a bill intended to back demonstrators in Hong Kong. It urged China to charge the US of prying in domestic matters. Senator Marco Rubio, R-FL, told Squawk Box, of CNBC, that he hears President Donald Trump might sign the bill.
Michael Zezas, Strategist at Morgan Stanley, said that this highlights the density of US-China talks, consistent with their continuing view. Over the medium term, there’s no steadfast path to linking core trade fights that would lead to significant tariff reduction. Since the beginning of 2018, the two economic powerhouses have executed tariffs on each other’s goods, worth billions, beating financial markets, souring trade, and user sentiment.
Dil Bole Oberoi
