China badly wants trade deal

Andrew Cummings
October 10, 2019

Stocks rose to session highs Thursday after President Donald Trump said he will meet with Chinese Vice Premier Liu He on Friday, raising hope that the two countries could make progress on the trade front.

The Dow Jones Industrial Average was briefly up more than 250 points that morning on the prospect of the trade talks stretching over two days. Apple climbed more than 1%.

"Big day of negotations with China".

"It remains to be seen whether a partial trade deal will be acceptable for President Trump who wants to secure a broader agreement", MUFG strategists said. The 48% increase from the same month past year was largely driven by tariffs implemented by the Trump administration, the group said, which accounted for $3.4 billion.

The Trump administration on Monday evening added 28 Chinese companies to its entity list, barring them from doing business with the U.S. In addition, the administration restricted visas for Chinese officials and said it was considering limiting government pension fund investments in China and that it would form a "study group" to review Chinese listings on U.S. stock exchanges.

"The view on the currency story could be swinging here", said Saxo Bank's head of European currency strategy, John Hardy, "And the market is sensing that euro-dollar is the pressure point".

Notwithstanding the SCMP report, by all indications the talks are set to continue in Washington on Thursday and Friday, when higher level meetings will reportedly take place. The issue of forced technology transfers, which China refused to put on the table, was the reason talks were at a standstill, SCMP reported.

"We are not aware of a change in the vice premier's travel plans at this time", a White House spokesman told CNBC.

A Chinese official said Wednesday the country was still open to reaching a partial trade deal with the USA that may include large purchases of American commodities, but added that success was contingent on Trump halting further tariffs. Another possibility is that talks conclude on Thursday after one day of negotiations.

S&P 500 mini futures traded down 0.2%, though losses had been trimmed by a New York Times report that Washington would soon issue licences allowing some USA firms to supply non-sensitive goods to China's Huawei Technologies.

The White House is looking at rolling out a previously agreed currency pact with China as part of an preliminary deal that could also see a planned tariff increase next week suspended, people familiar with the discussions told Bloomberg.

US stocks rose by about 1% for the second straight day on Thursday on hopes that top-level U.S. The administration subsequently delayed the ban to allow US businesses to make other arrangements. We have some tremendous deals under negotiation. "The transparency of these negotiations are overwhelming for markets but, I remain optimistic about the outcome".

President Donald Trump, now embroiled in a worsening impeachment battle with House Democrats, agreed in September to postpone ratcheting tariffs on $250 billion in Chinese goods from 25% to 30% until October 15 after Beijing, in a sign of goodwill, waived tariffs on some United States goods.

Americans shelled out tens of billions of dollars in tariffs over the past year and a half.

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