Trade war between China and USA is finally “on hold”. A win-win business cooperation seems to begin between the two largest economies of the world. At least this was what Chinese Media supported in response to those implied that China gave in to US pressure and threats.
The two giants of the global economy agreed to set aside their dispute over trade tariffs. On a Joint Statement regarding Trade Consultations they underlined that China will significantly increase purchases of United States goods and services. The whole statement sets the framework for taking measures to reduce the US trade deficit in goods with China. US exports will focus on agriculture and energy. The two sides also agreed to expand trade in manufactured goods and services.
The delegations of the two countries also reviewed Intellectual property protection. Intellectual property “theft” costs US almost $600 billions on a yearly basis.
The US Dollar inched up to a fresh five-month high for 2018 following the news on the “postponement” of US-China trade war. It rose against its major-trended rivals above $94. Australian Dollar rose as well as the risk of the trade war softened.
Euro headed lower against all its peers as dollar strengthens and soft data do not appear to improve. In addition, uncertainty over Italy is still there. The common currency was the worst performing currency last week.
The Sterling fell against the US Dollar as the latter hit a new five-month peak. It was a five-month low for pound. Important data are to be published this week, including inflation data and GDP.
Gold prices recovered as US Treasury Yields traded flat. After its worst – last – week since December, the most valuable metal tries to retreat.
Oil prices inch up as the two largest economies of the world, China and USA decided to “take effective measures to substantially reduce the US trade deficit in goods with China”, i.e. to “adjourn” the trade-war between them.
Sources: Reuters, Euronews, CNN Money
PLEASE NOTE The information above is not investment advice.