China hopes it can reach a trade agreement with the United States that satisfies both sides as soon as possible amid intense discussions.
Fresh U.S. tariffs on Chinese imports are scheduled to take effect on Dec. 15. China has demanded that some of the existing U.S. tariffs imposed on about $375 billion worth of its exports be removed. Further, they demanded a cancellation of the Dec. 15 tariffs on some $156 billion of its remaining exports to the United States.
The two countries are negotiating a so-called “phase one” deal aimed at de-escalating their prolonged trade dispute. But it is unclear whether such an agreement can be reached in the near term.
Completion of a phase one deal between the world’s two biggest economies had been initially expected in November. Trade delegations on both sides remained locked in discussions over “core issues of concern”. U.S. President Trump has demanded that China commit to specific minimum purchases of U.S. agricultural products among other concessions. Intellectual property rights, currency and access to China’s financial services markets are included in such core issues.
On Monday customs data released on Sunday showed exports from China in November fell 1.1% from a year earlier. Also, Attention shifted to U.S. Federal Reserve and European Central Bank policy meetings this week.
Forex – China hopes for trade deal ASAP
The US dollar held its ground on Monday in the wake of Friday’s jobs data. Nonfarm payrolls soared to 266.000, up from 128.000 a month earlier. Wage growth remained steady at 0.2% while the unemployment rate dropped from 3.6% to 3.5%. The dollar index was little changed at 97.63, after rising 0.3% on Friday’s job numbers.
The dollar changed hands at 108.52 yen. It had lifted to 108.92 yen on the U.S. jobs data before losing momentum.
The euro traded at $1.1064, after hitting a one-week low of $1.10395 on Friday.
The Sterling hit a fresh 2-1/2 year high against the euro after the latest opinion polls. The British currency rallied to a seven-month high at $1.3180 and to a 2-1/2-year peak versus the euro at 83.94. The latest polls fuelled optimism that Thursday’s election will end near-term Brexit uncertainty.
Oil prices fell on Monday after data showed Chinese exports declined for a fourth straight month.
Brent futures were down 60 cents, or 0.93%, at $63.79 per barrel by 1315 GMT. Brent gained about 3% last week on news that OPEC and its allies would deepen output cuts. WTI oil futures were also down 60 cents, or 1.01% to $58.60 a barrel, having risen about 7% last week
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money