US-China trade talks drive up stock futures
US-China trade talks drive up stock futures
The US futures rise on Sunday after Finance Minister Scott Bessent stated that "considerable progress" was achieved in the trade negotiations with Chinese representatives. This could help reduce the tensions that were triggered by Trump's aggressive customs policy.
market development and effects on the economy
The Dow Futures rose by 1.03 %, which corresponds to 427.66 points. The S&P 500 futures increased by 1.31 % or 75.8 points, while the technology-heavy Nasdaq Composite futures grew by 1.71 % or 348.19 points (as of 7:45 p.m. ET).
talks between US and Chinese officials
Bessent and the US trade officer Jamieson Greer met with other US officials in Geneva, Switzerland to negotiate with Chinese representatives about the trade. This happened after President Donald Trump had introduced massive tariffs of 145 % in most Chinese goods last month. China reacted with an inch of 125 % to US goods.
market forecasts and investor expectations
The markets have fluctuated strongly in recent months due to the uncertainty about Trump's changing customs policy. The profits on Sunday indicate that investors are optimistic that a trade agreement between the USA and China could boost both the US and the global economy.
planned announcement of a trade frameworks
It is expected that the US officials will announce a framework for the trade agreement on Monday morning. The potential agreement with China follows the announcement of Trump that on Thursday a deal with the United Kingdom .
The tariffs between the USA and China are expected to remain, but not at the massive heights that Trump introduced in April. Minister of Commerce Howard Lutnick confirmed on Sunday on the program "State of the Union" from CNN that the USA is not willing to determine customs tariffs under 10 % in negotiations with other countries. The trade agreement with the United Kingdom provides for a 10 % customs set that remains for the “near future”. The trade agreements follow weeks of uncertainty due to Trump's changeable pay decisions. Consumer confidence has sunk , and the nation's gross product has shown a decline in the first quarter. Analysts from Goldman Sachs reported on Thursday that an important inflation indicator could effectively increase to 4 % by the end of the year, due to the extensive tariffs. A de -escalation of the trade war with China is still a positive sign. The announcement on Sunday comes weeks before American consumers may see higher prices for goods or empty shelves in shops. The effects of the tariffs have not yet been fully estimated, since ships that enter China in US ports are now the first to be subject to the high tariffs. Imports from China have dropped since Trump's tariffs came into force. Gene Seroka, Managing Director of Los Angeles port, had previously told CNN that the decline in imports from China at the ships that are now in charge are over 50 %. This article has been updated with further information. For this report, CNNS Betsy Klein, David Goldman and Nathaniel Meyershn contributed. permanent customs tariffs and effects on consumers
economic challenges and uncertainties
outlook on the future and possible effects
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