A looming U.S. tariff deadline on Chinese goods may derail any progress made in trade negotiations between the USA and China.
Progress on talks to resolve the US-China trade dispute with China remains elusive.
Investors are focused on Dec. 15, when the Fresh U.S. tariffs on Chinese imports such as mobile phones and toys is scheduled to take effect. Hopes of a partial trade deal between the world’ s top economies have been a shade weaker over the last 24 hours. Conflicting headlines have led to uncertainty in the market. A “phase one” agreement is getting potentially delayed as the two sides continue to wrangle over key details.
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.
Attention, also, shifted to U.S. Federal Reserve and European Central Bank policy meetings this week for cues on its 2020 economic outlook. Investors are almost certain the Fed will leave rates unchanged when its two-day meeting ends on Wednesday. In a year’s time, however, money markets are pricing in a full 25- basis-point cut.
Further, a trade deal signed with Mexico and Canada is still awaiting ratification by the U.S. Congress.
Forex – Looming US tariff deadline adds to uncertainty
Against a basket of currencies, the dollar traded down 0.1% at 97.513.
The dollar was flat versus the Japanese yen at 108.56 as investors remained wary of a deadline for U.S. tariffs on China.
The euro rose 0.2% to $1.1082 after a better-than-expected German economic sentiment survey, with moves limited by doubts that the release will change the ECB rhetoric.
The Sterling rose to a seven-month high of $1.3190 on expectations the Conservatives will win a majority in the British election. Against the euro, sterling was up 0.2% at 84.05 pence, close to a two-and-a-half-year high of 83.94 pence it reached on Monday.
Oil prices slipped for a second straight day as a slowing global demand outlook outweighed OPEC’s deal with associated producers last week to deepen output cuts in 2020.
Brent crude was down 11 cents, or 0.2%, at $64.14 per barrel by 1445 GMT. West Texas Intermediate oil was 14 cents, or 0.2%, lower at $58.88 a barrel.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money