Investors are catching their breath after a surge in optimism ahead of the signing of the first-phase trade deal between the world’s biggest economies and after Washington’s lifting of the currency-manipulator label from Beijing.
According to Daily Economic Calendar from EGM Securities Kenya Limited, activity in Global stock markets rose significantly yesterday ahead of a trade deal between US and China.
London and Frankfurt rose in early trading while Shanghai, Hong Kong and South Korea finished higher.
The US-China pact involves a pledge by China to buy US$ 200billion of US goods over a 2-year period including US$ 50billion in energy, US$ 40billion in agriculture, US$ 35billion-40billion in services and US$ 75billion in manufactured goods.
Asian equity markets were higher as the region took its cue from the fresh record levels on Wall Street amid the backdrop of trade optimism.
US Treasury removed China from the currency manipulator list in its semi-annual report
Figures indicate that China’s exports and imports mostly surpassed estimates for December while trade with the US contracted by 10.7 per cent throughout 2019.
Officials said the US Treasury is about to finish translating phase one of the deal which includes commitment regarding currency manipulation. White House Trade Adviser Navarro commented that the Phase 1 deal will allow the US to swiftly reimpose tariffs if it unilaterally determines that China has broken any of its commitments.
In related news, Chinese officials will meet with American companies to send the message that China is open for business, according to FBN’s Lawrence citing sources.
There were also comments by Customs Vice Minister Zhou that the Phase 1 deal will boost Chinese imports from the US but won’t affect China’s imports from other countries, while Zhou added that trade growth still faces complex external environment this year.