- The financial markets have given their initial reaction to the price talks between the United States and China during the weekend. Although none of the parties has announced anything on the prices, the White House alluded to an agreement to help resolve the US global trade deficit, and China said that a “mechanism” would be established for future discussion on trade and the economy.
Investors weighed on Sunday during the first US-Chinese trade discussions this weekend, the two parties reported progress without saying anything about the prices.
The term contracts for the industrial average of Dow Jones jumped 401 points, or 0.97%. The term contracts on S&P 500 jumped by 1.15% and the term contracts on the NASDAQ jumped 1.45%.
Dow Futures lost a little juice after President Donald Trump published on social networks that he planned to sign an executive decree to reduce the prices of prescription drugs, predicting that they would drop from 30% to 80%.
The dollar joined 0.1% compared to the euro and 0.25% against the yen. Gold, which emerged as a favorite refuge asset in the dollar, dropped $ 3,273 per $ 3,273.
The 10 -year treasure yield increased by less than a basic point to 4.382%. US oil prices increased by 0.57% to $ 61.37 per barrel, and Brent crude increased by 0.49% to $ 64.22.
“I am pleased to announce that we have made substantial progress between the United States and China during very important commercial negotiations,” journalists to the Treasury Secretary, Scott Bessent, added that a complete briefing with more details will come on Monday.
The US trade representative Jamieson Greer, who also participated in negotiations with a Chinese delegation led by the Deputy Prime Minister, He Lifeng, suggested that a sort of agreement had been concluded.
“Do not forget why we are first here-the United States has a massive trade deficit of $ 1.2 billion, so the president declared a national emergency and imposed prices, and we are convinced that the agreement that we have concluded with our Chinese partners will help us work to resolve this national emergency,” he said.
Later, China, he said that the two countries had agreed to create “a consultation mechanism” for future discussions on commercial and economic issues, while citing progress also in talks.
A complete trade agreement was not expected this weekend, but positive comments from the United States and China suggested that they at least dismissed trade tensions, after President Donald Trump hit China with a 145% rate and that Beijing retaliated with a 125% function.
For the moment, the result of tariff talks seems to be “a large framework in which the two nations can lead other talks, in order to reach a wider trade agreement”, according to Michael Brown, main research strategist at Peppperstone.
“It is not the worst case that was possible from this weekend talks, far from it, but not a concrete agreement either,” he wrote in a note.
While Wall Street examines more details on price talks on Monday, the main economic relationships are also scheduled in the coming week.
The Labor Department will publish its consumer price index on Thursday and its producers’ prices index, providing more inflation indices while prices began to settle last month.
Reports for monthly retail sales and industrial production are also scheduled for Thursday. Several officials of the Federal Reserve will speak throughout the week, after the central bank maintained stable rates last week and said that it was still in a hurry to adjust the rates.
This story was initially presented on Fortune.com
