U.S. – China trade talks – a week of ups and downs 10th October 2019
Volatility
Overnight volatility hit the markets as a report cast some doubt over the U.S. – China trade talks, suggesting the Chinese delegation may pack up early and cut short the talks – this caused the markets to pullback.
Dow futures drop by 300 points
However, almost as quickly as they reacted – they started to recovered. The Dow futures lost 300 points at one point and touched 26025 but within an hour or so some of these loses had been recovered.
Partial deal?
This, after the Chinese suggested they were open to a ‘partial’ deal and also after Trump imposed more restrictions on Chinese companies. See earlier report here
Report suggested talks will end Thursday?
A report broke Wednesday night suggesting that the U.S. – China high level talks would now only take place until Thursday. They were scheduled to end Friday. This report caused stock futures to plunge overnight.
Inaccurate report?
However, a little later this report was deemed to be inaccurate. Futures started to recover.
Market futures recover
Later U.S. market futures then recovered a big chunk of their losses after Bloomberg News reported the U.S. was thinking about suspending a tariff increase in exchange for a currency pact.
And another report also allegedly suggested the Trump administration planned to allow the sale of some products to Huawei.
All this helped with investors sentiment – markets moved up!
Dow up!
And the latest… President Donald Trump tweeted that he will meet with Chinese Vice Premier Liu He on Friday. Stocks rallied on the news. Markets very happy with this news seeing the Dow climb to 26550 as at: 16:45 BST
Fickle?
The slightest whisper of any trade talk news moves the markets. How fickle has it become!
Markets reacted very favourably to this news.
Crazy volatile times! Especially in the U.S. markets.
Where now?
So, where now. I guess we will all have to wait and see what Friday brings.
Will the talks progress – I think so? A deal breakthrough has to be more likely now.