US-China Reached a Trade Deal, Sunday Tariffs Off

US-China Reached a Trade Deal, Sunday Tariffs Off


Wall Street closed little changed after P-1 China trade deal reached

President Trump said Friday that the US has canceled plans to impose new tariffs on $160-B in worth of Chinese imports Sunday as part of a modest interim agreement that de-escalates a 17-month trade dispute between the world’s 2 biggest economies.

The United States is also reducing existing import taxes on about $112-B in Chinese goods from 15% to 7.5%

In return, President Trump said on Twitter, the Chinese have agreed to “massive” purchases of American farm and manufactured products as part of a so-called P-1 deal. The office of President Trump’s trade representative said China had consented to “structural reforms” that would improve intellectual property protection and curb the practice of forcing foreign companies to hand over technology as the price of admission to the Chinese market. But it offered no details, and business groups said more needed to be done to combat Beijing’s aggressive trade practices.

This deal should go a long way in reversing the downward turn in bi-lateral trade relations and increasing certainty for US businesses.

Friday, the major US stock market indexes finished at: DJIA +3.33 at 28135.29, NAS Comp +17.56 at 8734.89, S&P 500 +0.23 at 3168.80

Volume: Trade on the NYSE came in at 845-M/ share exchanged

  • NAS Comp +31.6% YTD
  • S&P 500 +26.4% YTD
  • Russell 2000 +21.5% YTD
  • DJIA +20.6% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish for the weekended 13 December 2019.

Looking ahead, investors will receive the Empire State Manufacturing Survey for December, the NAHB Housing Market Index for December, and Net Long-Term TIC Flows Monday

Have a terrific weekend

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