Bull Rally

U.S. stocks climb to new highs as U.S. and China sign Phase One trade deal

It’s done! U.S and China signed their Phase One trade deal on Wednesday 15th January 2020. And the Dow, S&P 500 and Nasdaq reach new all time highs!

The deal in numbers

China bought $186 billion of U.S. goods and services in 2017 and now agreed to purchase an ‘additional’ $200 billion in U.S. goods over the next two years as part of the Phase One trade deal. These ‘additional’ purchases will come in addition to the 2017 U.S. exports.

The deal is reported to stipulate that China will buy $77 billion in ‘additional’ goods and services in 2020 and $123 billion in 2021 to meet the $200 billion total.

U.S. exports to China should then increase to $263 billion in 2020 and $309 billion in 2021.

Effect on U.S. Stocks

U.S. stocks responded positively to the deal. The Dow closed up at a new high of: 29030. The Nasdaq closed up too at a new high of: 9259 and the S&P 500 also closed up at a new high of: 3289

Phase two trade deal up next…

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