Wall Street says China open to a partial trade deal with United States
As reported by Wall Street, China has been ready to open a partial deal with United States investors ahead of high-level trade negotiations. Reportedly, all three major American stock averages recorded higher, along with Microsoft and Apple Inc offering one of the biggest lift to the benchmark S&P 500.
China remains open to agreeing to a partial trade agreement with the USA, despite the inclusion of top artificial intelligence startups of China in a trade blacklist. While the Financial Times and Beijing have been offering to hike its annual purchases of American agricultural products.
Chief investment strategist at Inverness Counsel, New York, Tim Ghriskey said that “A restricted deal with China would at least find the way for a huge deal down the road. Every day we receive a different tweet and therefore, the market takes a different direction. Today is an exciting day on a favorable tweet.
The United States Federal Reserve’s most recent meeting showed that numerous policymakers supported the requirement for an interest rate cut previous month and while all were more concerned with risks associated with the United States and China trade spat, badly impacting global growth among other geographical issues, they differed on what they meant for the economy of the USA.
Mr. Ghriskey added that “The outlook seems challenging due to the general economy, which is being affected by recent tariffs. And thus, unless we observe a trade deal, the probability of the Fed slowing rates again at the October meeting is said to be high.”
Trade concerns, efforts to criticize US President Donald Trump, signs of lowering economic growth and increasing geopolitical tensions have gripped equity markets throughout this month, along with the S&P as well as Down Jones indexes decreased about two percent since the end of the September month.