Tariff Deal Talks Extended To Next Week Lends Fresh Hope
The much-awaited talks on China and the U.S. trade deal continue to be on-progress.
Reports state that the talks will continue next week and hopes are set anew that the resolution may happen.
The talks that have been going on weeklong have been extended in Washington and will continue next week. Parties from both countries are eager to continue talks and get on with the negotiations. Key points are still being discussed. Negotiations are on, led by Treasury Secretary Steven Mnuchin and Trade Representative of the U.S. Robert Lighthizer in Beijing.
The Dow Jones Industrial Average has shown a positive reaction to the news. Dow Jones future, S&P futures, and Nasdaq 100 futures were up by 1 percent on the news.
The Dow had closed down by 103.88 points and closed at 25,439 on Thursday. The S&P 500 index had also given up 0.3 percent and closed at 2,745.73 points. The Nasdaq was marginally up by 6.58 points. It saw an increase of 0.09 percent and closed at 7,426.95.
The negotiating team from the U.S. has met the Chinese President Xi Jinping and discussions are on. The market has been anticipating the talks to end positively and waits for further movement. Though no confirmation is received, the tariff truce looks to be positive, with the negotiations to continue next week.
On the political front, the announcement that President Trump will be signing the spending bill and keep the government functioning was made late Thursday. However, a national emergency is also declared at the border towards the wall funding.
March 2 is the deadline given for the deal to be finalized. However, President Trump may consider pushing the deadline by another 60 days so that the deal may be clinched.
However, retail sale data has not been good for the month of December. The fall in December is the biggest since September 2009.