Major US equity indices opened higher for the second straight session on Wednesday and were being supported by a less confrontational approach for China investments.
The Trump administration said that it would rely on the Committee on Foreign Investment in the United States (CFIUS), whose authority would be enhanced by new legislation in Congress, to control foreign investments in sensitive domestic technologies rather than imposing China-specific restrictions.
“¢ Trump decides against harshest measures on China investments
Softening of the Trump administration’s stance on trade, which had been one of the key factors behind the recent slump in equity markets, helped the US index futures to reverse course from early sharp losses and build on overnight modest gains.
The market reaction clearly reflects investors’ nervousness over trade tensions and hence, trade-related developments would continue to be the primary focus in the near future.
On the economic data front, orders for durable goods fell 0.6% in May, following a revised 1% decline in April, while goods trade deficit narrowed 3.7% to $64.8 billion in May. Mixed US economic data, however, did little to influence the momentum on Wednesday.
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