{"id":158665,"date":"2019-10-29T11:11:40","date_gmt":"2019-10-29T15:11:40","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=158665"},"modified":"2019-10-29T10:37:34","modified_gmt":"2019-10-29T14:37:34","slug":"us-china-trade-deal-nearly-done","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/us-china-trade-deal-nearly-done\/","title":{"rendered":"US-China Trade Deal Nearly Done"},"content":{"rendered":"
October 29, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Deal Coming Soon<\/strong><\/h2>\n

SPX500 rocketed to fresh highs yesterday in response to comments from President Trump.<\/p>\n

The comments have fuelled speculation that the \u201cphase one\u201d trade deal agreed upon verbally on October 10th<\/sup>, could now be signed imminently.<\/p>\n

Trump told reporters outside Joint Base Andrews in Maryland yesterday:<\/p>\n

\u201cWe are looking probably to be ahead of schedule to sign a very big portion of the China deal, we\u2019ll call it phase one but it\u2019s a very big portion.\u201d<\/p><\/blockquote>\n

The President explained that the deal in question would \u201ctake care of the farmers\u201d and \u201calso take care of a lot of the banking needs.\u201d He added:<\/p>\n

\u201cSo we\u2019re about I would say a little bit ahead of schedule maybe a lot ahead of schedule,\u201d<\/p><\/blockquote>\n

China To Beef Up Farm Purchases<\/strong><\/h2>\n

Media reports have noted sources saying that the discussions which took place on Friday last week saw China demand that the US cancel some of the current tariffs on Chinese goods.<\/p>

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This would be in exchange for committing to ramping up its agricultural purchases of US farm goods. The US is reportedly looking for China to commit to specifics regarding time and price for buying these items.<\/p>\n

However, China is still looking to secure buyer discretion.<\/p>\n

China Sounding Optimistic Also<\/strong><\/h2>\n

Trump\u2019s comments echo those of Chinese officials over the weekend who also said that the deal is moving along swiftly. They claimed that only a few final details are yet to be confirmed.<\/p>\n

The mood in the markets this week reflects the level of relief among traders. This, of course, is thanks to the damage that the now 16-month trade war has wrought on the global economy.<\/p>\n

Many central banks, as well as the IMF, have highlighted the damage caused by the tariff war. The war has prompted most G10 central banks to return to easing. It also caused the\u00a0IMF to slash its global growth<\/a>\u00a0forecast this year to just 3%, the lowest level since the GFC.<\/p>\n

So, with the two countries looking ever closer to signing deal, how much do we know about what is to be included?<\/p>\n

The Deal<\/strong><\/h2>\n

According to Bloomberg, the current \u201cphase one\u201d deal includes:<\/strong><\/p>\n