The initial deal that investors had hoped to be signed by now may slide into next year. China says it will strive to reach ‘phase one’ trade deal with U.S.
China will strive to reach an initial trade agreement with the United States as both sides keep communication channels open. The Chinese commerce ministry in an attempt to allay fears talks might be unravelling make statements towards this direction. China has invited top U.S. trade negotiators for a new round of face-to-face talks in Beijing amid continued efforts to strike at least a limited deal.
China is willing to work with the United States to resolve each other’s core concerns based on equality and mutual respect a spokesman at the ministry told reporters.
Officials from Beijing had suggested that Chinese President and U.S. counterpart might sign a deal in early December. But completion of a phase one deal could slide into next year; trade experts and people close to the White House told Reuters previously. Beijing presses for more extensive tariff rollbacks and the U.S. administration counters with heightened demands of its own.
This week has seen a hardening of rhetoric from both sides, prompting investors to scale back optimism. A fresh row between Washington and Beijing over U.S. legislation on Hong Kong has also threatened to undermine their trade talks.
START TRADINGForex – Trade deal could slide into next year
Investors fixated on the latest developments in a bitter 16-month long trade dispute that has dealt a blow to the world economy.
The US dollar which has behaved as a safe-haven currency for most of this year, edged up. The dollar index was down 0.1% at 97.82 — nearing two-week lows hit on Monday of around 97.68. It was 0.1% softer versus the euro on the day at $1.10835 and 0.15% weaker against sterling at $1.2940.
Against the yen, the dollar was steady at around 108.60 with the Japanese currency supported by renewed trade war jitters.
The pound inched higher on Thursday after two days of losses. Financial markets awaited an election manifesto from the opposition, with the ruling party appearing to still hold a hefty lead in opinion polls. By 0930 GMT, the pound was 0.2% higher against a broadly weaker dollar and was very marginally weaker against the euro at 85.65 pence. The currency had slipped to a five-day low of $1.2888 after Tuesday’s televised debate.
The gold prices on Thursday eased from the last session’s two-week high. Spot gold dipped 0.1% to $1,470.45 per ounce as of 1227 GMT. Prices had notched a two-week high of $1,478.80 in the previous session. Silver was down 0.3% at $17.08
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money