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According to US and Beijing officials, lawmakers and trade experts, an ambitious “phase two” trade deal between the US and China is looking less likely as the two countries struggle to strike a preliminary “phase one” agreement, The Standard reports.

The sources said: The November 2020 US presidential election, combined with the White House’s reluctance to work with other countries to pressure Beijing is dimming hopes, for anything more ambitious in the near future.”

The uncertainty around the US-China trade deal persists, despite the latest trade-positive headline, which keeps the lift in the risk sentiment limited. USD/JPY is off the highs and now flirts with the 109 handle, as S&P 500 futures pare back gains.

Markets are refraining from buying into the trade optimism unless anything concrete on the trade deal is announced. Meanwhile, looming Dec. 15 US tariffs hike on the Chinese imports also continue to cap the optimism.

  • China’s CommerceMin: China’s Liu, USTR Lighthizer and US Treasury Sec. Mnuchin held a trade call