Home Wall Street rallies on US/China trade deal Phase 1 agreement
Forex News Today: Daily Trading News

Wall Street rallies on US/China trade deal Phase 1 agreement

  • The Dow Jones Industrial Average rose 319.92 points, or 1.2%, to 26,816.59.
  • The S&P 500 index climbed 32.14 points, or 1.1%, to 2,970.27.
  • Nasdaq Composite Index added 106.26 points, or 1.3%, to 8,057.04.

U.S. stocks rallied on Friday following a positive outcome of the high-level trade negotiations between the US and China on Friday. Consequently, the Dow Jones Industrial Average rallied over 500 points or 2% at its highest level. The Dow Jones Industrial Average rose 319.92 points, or 1.2%, to 26,816.59, the S&P 500 index climbed 32.14 points, or 1.1%, to 2,970.27, while Nasdaq Composite Index added 106.26 points, or 1.3%, to 8,057.04. For the week, the Dow climbed 0.9%, while the S&P 500 and Nasdaq added 0.6% and 0.9% respectively.

Announcements were made just ahead of the Wall Street close following the meeting between President Trump, colleagues and Chinese Vice Premier Liu. Trump said that they have come to a substantial phase 1 deal with China. However, gains lost momentum toward the close following the announcement of a Phase 1 agreement lacked clear details.

Subsequent statements from Trump as follows:

  • The agreement is a ‘big deal’; It is better to do deal in ‘sections or phases’.
  • We have mode progress on tech transfer, more on that in phase 2.
  • Also agreed on currency and FX issues.
  • Structural AG issues have also been addressed.
  • China has agreed to make 40-50bln USD in AG good purchases.
  • Will take up to 5 weeks to get deal written.
  • Have come to deal on intellectual property, financial services and big AG purchases.
  • The currency deal will be of tremendous benefit.
  • We are very close to ending trade war.
  • To do a formal signing with Chinese pres. Xi
  • Signing could happen at APEC Chile 2019 (Nov 16-17).
  • Not expecting deal to fall apart over next few weeks, ‘though there is a possibility’ it will.
  • Phase 2 of deal to include some IP aspects.
  • Discussed Hong Kong.
  • Things have toned down there and he thinks that’s going to take care of itself.
  • We will look at the blacklist and what companies should be on it.
  • Fed should cut rates despite this deal.
  • Little doubt that we will be able to finalize this deal.

Additionally, there was no decision made planned on a new 15% tariff set to go into effect on December 15 on about $160 billion in annual Chinese imports.

DJIA levels

The index extended gains in a reversal of the end of September slide and scoring through the 27000 psychological level, albeit leaving a bearish pin-bar on the daily chart with price moving back tot he trendline resistance turned support. Next week’s open will reveal whether the 27500s and a break of the July highs will be achievable in the near-term. Bears will otherwise seek a close back below the trendline with a focus back on the 200-DMA down in the 26400s.

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.