U.S. stocks jump as trade war fears subside

Hope Soto
May 23, 2018

Farm sales could be key politically, as many Trump supporters in rural states say they feared a US trade war with China would hurt their export business.

Treasury Secretary Steven Mnuchin "discussed options for the president's consideration on the matter", a Treasury spokeswoman said.

"More false promises and delaying tactics", tweeted Dan DiMicco, a former steel executive who served as a trade adviser to Trump during the presidential race.

As numerous economic commentators have pointed out, the methods being employed by the Chinese are not essentially different from those which marked the industrial and technological rise of the U.S. and then later Japan.

US stocks rose on Monday and gains in industrials helped propel the Dow to a more than two-month closing high, after a truce between the United States and China calmed fears that a trade war might be imminent. The Shenzhen, China-based company, which employs about 75,000 people, depends on USA components, such as chips from Qualcomm Inc.

Developments have allowed both nations to claim a victory, with China accepting more United States exports and the Chinese Government the ability to say that they did not surrender to President Trump's demands. China counterpunched with tariffs on USA products, rattling the market.

Trade negotiations will continue, with a United States delegation to visit Beijing to work out details for the expansion of U.S. exports under the terms of an agreement struck at high-level talks between the two sides in Washington at the end of last week.

Schumer fired back: "When it comes to being tough on China trade, I'm closer to Trump than Obama/Bush".

More news: Trump Seems To Threaten North Korea Not To Cancel Summit
More news: Jessica Mulroney Arrives in London For Wedding
More news: Aston Villa v Middlesbrough: Championship play-off semi-final

The United States and China are working toward an agreement that would ease US sanctions that were imposed on ZTE Corp. and let the Chinese telecommunications giant stay in business. An 2017 agreement called for it to pay as much as $1.2 billion and penalize the workers involved, in what was the largest criminal fine for the U.S. Justice Department in an export control or sanctions case.

"Under our potential deal with China, they will purchase from our Great American Farmers practically as much as our Farmers can produce", the tweet said. Stocks have generally been volatile this year on a combination of factors including the prospect of faster rate rises by the U.S. Federal Reserve and worries about a full-blown trade war. Negotiations are now behind closed doors, so it's unlikely we'll learn much more about this deal before it is settled.

In an interview earlier on Monday with CNBC, Mnuchin characterized the USA tariff plan as suspended, but warned that "the president can always put tariffs back on".

The deal also focused on China's "positive position" to increase imports rather than a "negative position" of getting it to cut exports, Mei said.

"Despite all the pressure, China didn't 'fold, ' as U.S. President Donald Trump observed".

"As trade tensions settle and peak growth/earnings anxieties subside, the clouds are lifting for stocks", JPMorgan analysts said in a note.

"We were never supportive of tariffs, so any actions that can be taken to stop those from being implemented are positive from our view", Parker told Reuters. Boeing Co. gained 3.6 percent and construction equipment maker Caterpillar rose 2.1 percent.

Other reports by MaliBehiribAe

Discuss This Article