Archives of “November 6, 2019” day

rss

China will not accept Phase One trade deal if US does not suspend tariffs – report

  
  Analysis
#  #  #

Global Times report

The US must cancel some of its current tariffs before China agrees to a Phase One trade deal, according to a former Chinese trade official cited in the Global Times.
The US is “very anxious’ to reach a trade deal with China but Beijing won’t agree if the US does not cancel some tariffs, Wei Jianguo, former vice minister of commerce, told the Global Times.
Tariffs under consideration are 15% duties that went into effect on Sept 1 on $125B of goods and a 25% tariff on about $250B worth of machinery and semiconductors.
They report also cites ‘sources’ who say there won’t be a deal if the US doesn’t suspend tariffs.
China will not accept a phase one deal if the US only suspends new tariffs that it has threatened to impose on Chinese goods, sources also told the Global Times on Tuesday.

Nikkei reports: China is doubling down on demands that may threaten trade deal

  
  Analysis
#  #  #  #  #

Cold feet again?

The Nikkei is reporting that Beijing has double down on demands that may threaten to delay a preliminary trade agreement with the US.
The report says that China is digging in on insisting that US withdrawal all tariffs levied since summer of last year before entering an agreement.  Pres. Trump is likely not thinking along those lines in Phase I of what will be a drawn out process.
Phase 1 is intended to focus on expanding American imports into China, but does not address the key structural issues like IP theft.
Trade deals sound good on paper but once the rubber meets the road and both parties dig in a bit more, the risks of a deal break down are real.
The US stock market is taking it in stride. The major indices are trading little changed on the day.
Gold meanwhile is down $25 or -1.67% which suggests no worries/be happy.
If the rhetoric becomes more pervasive, however, we could see a reversal of the market forces going forward.
CLICK HERE for the story

The bell rings and the Nasdaq and Dow close at new records

  
Analysis, US Market

The S&P was not so lucky.

The final bell has rung and the trading days over in the US stock markets. The final numbers are showing that the S&P index failed to close at a new record high. However, the NASDAQ and Dow both closed higher and therefore at new record highs.
The final numbers are showing:
  • the S&P index -3.61 points or -0.12% at 3074.66
  • The NASDAQ index rose 1.48 points or 0.02% at 8434.68
  • The Dow industrial average rose and 30.5 points or 0.11% at 27492.63.
The overall day was a little bit more sleepy with two-way flows.  You can argue that the Bull Run is getting tired. You can also argue that the sellers did not really push the market lower and the burden of proof is on them.
So call the day a draw and we will see what Wednesday brings to the price action…
Go to top