{"id":144972,"date":"2019-04-03T09:30:37","date_gmt":"2019-04-03T13:30:37","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=144972"},"modified":"2019-04-03T09:30:37","modified_gmt":"2019-04-03T13:30:37","slug":"spx500-surges-as-us-china-trade-talks-enter-end-game-stages","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/04\/spx500-surges-as-us-china-trade-talks-enter-end-game-stages\/","title":{"rendered":"SPX500 Surges As US\/China Trade Talks Enter \u201cEnd Game\u201d Stages"},"content":{"rendered":"
April 3, 2019<\/div>
\r\n<\/div><\/div>

By <\/strong>Orbex<\/strong><\/a><\/p>\n

Risk assets<\/strong>\u00a0have\u00a0traded strongly<\/strong>\u00a0this week. Expectations are growing around a\u00a0potential US\/China trade deal<\/strong>\u00a0which could put an end the damaging, year-long trade war. The war\u00a0soured world growth<\/a>\u00a0all throughout 2018.<\/p>\n

US and Chinese officials are due to begin a further round of meetings in\u00a0Washington on Wednesday following last week\u2019s meetings in Beijing.<\/p>\n

Issues Outstanding<\/strong><\/h2>\n

According to sources who spoke to the Financial Times this week, the two sides are drawing ever closer to agreeing on a deal following four months of negotiations. Reportedly, the\u00a0two outstanding issues<\/strong>\u00a0hindering the deal are what will happen to\u00a0current US tariffs<\/strong>\u00a0on Chinese goods (which China want to be removed) and what the specifics are of an\u00a0enforcement clause.<\/strong>\u00a0The\u00a0US is demanding the clause in order to ensure that China sticks to the terms of any deal.<\/p>\n

US Seeking Assurances Over Compliance<\/strong><\/h2>\n

The US wants to ensure that China\u00a0is fully compliant<\/strong>\u00a0with the terms of a trade deal from day one. China also wants to see the US\u00a0immediately remove the current $250 billion of tariffs<\/strong>\u00a0on Chinese goods. However, the US reportedly wants to keep some of them in place, to ensure that China adheres to the terms of the deal.<\/p>\n

The current deal would essentially result in a\u00a0higher level of Chinese purchases of US goods.\u00a0<\/strong>This would be\u00a0in order to reduce the US\u2019s trade deficit with China, which Trump has long warned against. The deal is also thought to include some assurances from China to\u00a0protect against the forced transfer of technology from US companies<\/strong>\u00a0operating there. And this is what the US calls the theft of intellectual property.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

US Officials Remain Positive<\/strong><\/h2>\n

The US Trade Representative Robert Lighthizer is also demanding the right for the\u00a0US to apply unilateral tariffs.\u00a0<\/strong>These would be as a punitive measure in the event that China violates any part of the agreement. They would also include a guarantee from China that it cannot retaliate with similar tariffs in such circumstances.<\/p>\n

While tensions clearly remain<\/strong>, the\u00a0Executive\u00a0Vice President for international affairs at the US Chamber of Commerce, Myron Brilliant, told reporters:<\/p>\n

\u201cWe\u2019re getting into the end-game stage\u2026\u00a0Ninety percent of the deal is done,<\/strong>\u00a0but the last 10\u00a0percent\u00a0is the hardest part, it\u2019s the trickiest part and it will require trade-offs on both sides\u201d.<\/p><\/blockquote>\n

Potential Trump\/Xi Jinping Summit<\/strong><\/h2>\n

If meetings this week are successful, we could see the scheduling of a\u00a0summit between Trump and Xi Jinping<\/strong>\u00a0to sign and deliver an agreement. If issues remain, we could see the current talks extended further. This would likely be until the next G20 meeting at the end of June. For now, though, traders are\u00a0remaining optimistic<\/a>\u00a0and the focus is on a deal being made, which is keeping markets supported.<\/p>\n

Technical Perspective<\/strong><\/h2>\n

\"spx500\"<\/a><\/p>\n

After breaking above the 2860.11 level resistance, the SPX500 has since retested the level which has held as support. It is now keeping focus on further upside. In terms of next levels to watch, the main upside objective is a retest of the all-time highs at 2940.69. If we see any retracement lower from here, the next support zones to watch are the 2852.65 level and the 2829.58 level below.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Risk assets\u00a0have\u00a0traded strongly\u00a0this week. Expectations are growing around a\u00a0potential US\/China trade deal\u00a0which could put an end the damaging, year-long trade war. The war\u00a0soured world growth\u00a0all throughout 2018. US and Chinese officials are due to begin a further round of meetings in\u00a0Washington on Wednesday following last week\u2019s meetings in Beijing. Issues Outstanding According to […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-144972","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=144972"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144972\/revisions"}],"predecessor-version":[{"id":144984,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/144972\/revisions\/144984"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=144972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=144972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=144972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}