{"id":158741,"date":"2019-10-30T11:05:39","date_gmt":"2019-10-30T15:05:39","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=158741"},"modified":"2019-10-30T09:44:12","modified_gmt":"2019-10-30T13:44:12","slug":"equities-traders-spooked-by-trade-deal-comments","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/equities-traders-spooked-by-trade-deal-comments\/","title":{"rendered":"Equities Traders Spooked By Trade Deal Comments"},"content":{"rendered":"
October 30, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Deal Not Done Yet<\/strong><\/h2>\n

Risk markets have recovered today following some jitters seen across yesterday\u2019s session.<\/p>\n

These came in response to reports that the\u00a0US-China trade deal might not be as \u201cdone\u201d as comments have suggested.<\/a><\/p>\n

Reuters ran a story yesterday reporting White House officials as saying that while negotiations are continuing between the US and China, the deal might not necessarily be ready in time for Trump and Xi to sign it at the upcoming APEC meeting in November.<\/p>\n

The White House official told reporters:<\/p>\n

\u201cIf it\u2019s not signed in Chile, that doesn\u2019t mean that it falls apart. It just means that it\u2019s not ready. Our goal is to sign it in Chile. But sometimes texts aren\u2019t ready. But good progress is being made and we expect to sign the agreement in Chile\u201d.<\/p><\/blockquote>\n

The official was keen to stress that the aim remains to have the deal signed in Chile. However, as of yet, the date is still fluid and could move back if the deal is not finished.<\/p>

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US & China Have An Understanding<\/strong><\/h2>\n

However,\u00a0the market is still hopeful that the two sides will agree on a deal.\u00a0<\/strong><\/p>\n

This sentiment is in line with the recent optimism shown by both US and Chinese officials on the back of last week\u2019s talks. Speaking at the Future Investment Initiative Conference in Riyadh yesterday,\u00a0White House adviser Jared Kushner said:<\/strong><\/p>\n

\u201cI think people understand the President, that he\u2019s firm, they know that he\u2019s going to make the decisions that he thinks are right, and I think ultimately that\u00a0we\u2019ve come to an understanding with China now on where we want to head.<\/strong>\u201d<\/p><\/blockquote>\n

Indeed, Kushner also acknowledged the political cost of the trade war for Trump saying:<\/p>\n

\u201cAll of the costs of it, the tariffs, the retaliation that people have put on, he\u2019s paid the price for, during his presidency.\u201d<\/p><\/blockquote>\n

Kushner added that he believed the US Treasury Secretary and Trade Representative have made\u00a0a \u201cfabulous deal\u201d<\/strong>\u00a0in their negotiations with Chinese officials.<\/p>\n

Trump Talks Equities Up to New Highs<\/strong><\/h2>\n

Speculation that a deal is forthcoming was heightened on Monday. This came following comments from Trump who noted that the deal with China was \u201cahead of schedule\u201d.<\/p>\n

Trump\u2019s comments sparked a 100 point rally in the S&P which saw it surging up to fresh all-time highs.<\/p>\n

Tariff Threat Remains<\/strong><\/h2>\n

If the current optimism from both US and Chinese leaders isn\u2019t enough to keep markets encouraged that the two sides will agree on a deal, then the threat of further tariffs might help.<\/p>\n

The US has warned that the Chinese do not sign a deal by December 15th<\/sup>\u00a0at the latest, it will press ahead with the next round of tariffs of 15% on $156 billion of Chinese goods.<\/p>\n

US Trade Adviser Says China \u201cMiscalculated\u201d<\/strong><\/h2>\n

Trump\u2019s trade adviser Pete Navarro\u00a0 told CNN:<\/strong><\/p>\n

\u201cThe Chinese have consistently miscalculated going back to Mar a Lago, they misread the signal of resolve and strength by the president. And as a result, they\u2019ve slow-walked us and reneged on deals and all they\u2019ve gotten is a tougher and tougher stance.\u201d<\/p><\/blockquote>\n

Headlines around the ongoing trade talks are likely to be volatile, yielding neurotic market reactions. However, traders will be doing their best to focus on the facts.\u00a0<\/strong><\/p>\n

Currently, the negotiations are continuing. The hope is that they can reach a deal in November, allowing room to move on to discussing the \u201cphase two\u201d deal.<\/p>\n

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

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

After breaking out above the 3028.08 level to print fresh all-time highs, SPX500 has subsequently tested the top of the recent bullish channel. This is holding as resistance for now.<\/p>\n

The RSI indicator is showing some mild bearish divergence here. However, while we hold above the 3028.08 level, focus remains on a further push higher. If we break back below that level, the 3011.96 level bullish channel low will be the key support zone to watch.<\/p>\n

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

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

By Orbex Deal Not Done Yet Risk markets have recovered today following some jitters seen across yesterday\u2019s session. These came in response to reports that the\u00a0US-China trade deal might not be as \u201cdone\u201d as comments have suggested. Reuters ran a story yesterday reporting White House officials as saying that while negotiations are continuing between the […]<\/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-158741","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158741","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=158741"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158741\/revisions"}],"predecessor-version":[{"id":158745,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158741\/revisions\/158745"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=158741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=158741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=158741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}