Wall Street closed in the green on trade talk hopes

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  • The S&P 500 index put on 26.34 points to finish at 2,919.40, up 0.9%.
  • The Dow Jones Industrial Average added 181.97 points, or 0.7%, to end at 26,346.01.
  • The Nasdaq Composite climbed by  79.96 points, or 1%, to close at 7,903.74.

The Dow Jones Industrial Average, DJIA, climbed on Wednesday following early reports of a possible partial trade deal between China and the US this week. The index added 181.97 points, or 0.7%, to end at 26,346.01. The S&P 500 index put on 26.34 points to finish at 2,919.40, up 0.9%, while the Nasdaq Composite climbed by  79.96 points, or 1%, to close at 7,903.74.

Conflicting trade talk headlines

A report from Bloomberg News explained that China was open to a limited tariff resolution with the U.S.. The Financial Times indicated that China has offered to increase by 50% purchases of agricultural products from U.S. farmers. However, a late statement from China poured cold water over such optimism and said that the US had damaged any goodwill following the blacklisting of Chinese companies by the US State Department the prior day, announcing that Beijing has little hopes of a trade deal breakthrough this week. 

Analysts at NAZ Bank explained that tensions between US and China appear to have eased a tad ahead of the trade talks set to resume tomorrow. “More tariffs are set to be added on October 15 and on December 1 so these may be delayed or dropped. However, no concessions are expected to be made on the tougher issues such as a reform of China’s state-led economic model.”

DJIA levels

The DJIA is suppressed below trendline resistance and remains a positive session away from the 21 and 50-DMAs converging in the mid 26000s. Bears will otherwise be en-route for a test of the psychological 26000 level again. A break to the upside and through the mentioned DMA accumulating around the mid-point of the 26000s in line with the Sep lows-resistance line in the mid-26000’s will open prospects back to the Sep highs through 27200.

 

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