World equity markets and US stock futures have been growing for the third day in a row, thanks to the familiar news cycle from the same series of “prospects and hopes for US-China trade agreements, and then markets are disappointed, as US administration takes a tough stance”
True to his favorite stick and carrot tactic, Trump once again gave a more conciliatory signal to China that he could allow the deadline for a trade agreement with China to be shifted form March 1. Of course, for this outcome, both sides should come closer to an agreement that will boost hopes for a breakthrough in a trade war. While Finance Minister Stephen Mnuchin and Trade Representative Robert Lighthizer were preparing for talks in Beijing on Thursday and Friday to conclude a trade deal, markets welcomed the signal for a possible extension of the tariff truce.
Optimism intensified after reports that Chinese President Xi is expected to join the trade negotiations with the US delegation in Beijing as a sign of goodwill. The bulls also felt confident after the obvious progress in the negotiations on the financing of the border wall, which reduced the likelihood of US government closure this Friday. Thus, it is likely that the next closure of the US government will be avoided. On this background, the US dollar is trying to win back yesterday's losses and demonstrate moderate growth. The US dollar index consolidated above 96.60 and is close to yesterday's highs around 98.85.
Today, market focus upon US statistics on consumer inflation. Consumer prices in the US did not change for the third month in a row in January, which led to the smallest annual inflation growth for more than a year and a half, which may allow the Federal Reserve to maintain stable interest rates for some time.
The US Labor Department said Wednesday that the consumer price index last month was held back by cheaper gasoline, which offset the rising cost of food and rent.
Dear traders! We are glad to announce the launch of new promo “CHINESE NEW YEAR” which allows you to increase your profits from trading in the world financial markets! Starting from 1 February 2019 and up to 1 March 2019 an additional 2% of profit will be credited for each profitable trade as well as […]
Dear Traders! We are pleased to announce the launch of the “Welcome Bonus 75 USD” promotion! Starting from 21.01.2019 and until 01.02.2019 inclusive welcome bonus of 75 USD or equivalent in another currency is available to all clients of the company.