Forget Trump's rhetoric, phase 1 of a trade deal with China is reportedly close after all
- Bloomberg reported that a trade deal between the US and China is inching closer, and set to be completed before tariffs rise on December 15.
- The two sides are close to agreeing the amount of tariffs to be rolled back in the "phase one deal," Bloomberg said, citing people familiar with the matter.
- Stocks pushed higher at 9:30 a.m. in London (4:30 a.m.) with US futures underlying the Nasdaq and S&P 500 rising 0.5%.
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A trade deal between the US and China is inching closer after all.
Bloomberg, citing people familiar with the matter, reported that the two sides are close to agreeing the amount of tariffs to be rolled back in the "phase one deal." Officials are getting closer on the specifics of tariff relief, the news organization reported.
Stocks pushed higher on the news at 9:30 a.m. in London (4:30 a.m.) with US futures underlying the Nasdaq and S&P 500 rising at least 0.5%. The DAX, Euro Stoxx 50, and CAC indexes all soared more than 1%.
"US negotiators expect a phase-one deal with China to be completed before American tariffs are set to rise on December 15, the people said," Bloomberg wrote. "Outstanding issues in the talks include how to guarantee China's purchases of US agricultural goods and exactly which tariffs to roll back."
Trade war fears have hit equity sentiment this week. On Tuesday, Trump said to reporters in London that he might postpone trade war talks until after the 2020 US election.
The unnamed sources told Bloomberg that Trump's rhetoric in London did not mean talks were "stalling" but instead that the president was speaking "off the cuff." They added that the issues over Hong Kong and Xinjiang weren't likely to stop a trade deal.
China also warned the US via one of its state news outlets on Tuesday that it was forming a list of American companies to blacklist due to their support for the Uighur Muslim population in Xinjiang- a further sign that tensions between two sides was worsening.
Commerce Secretary Wilbur Ross told CNBC on Tuesday that he supported the idea of delaying a trade deal till after the election, saying that it takes away any "leverage" China may have.
