The U.S.-China Reaches Phase-1 Trade Deal, Raising Optimism for Global Markets

Last night, the U.S. and China had concluded their two-day trade deals in an optimistic way by announcing a phase-1 trade deal.

 

The U.S. President Donald Trump said on Friday that both parties had come up with a substantial phase-1 trade deal, reaching agreement on intellectual property, financial services and a big purchase of agricultural products. China had also promised prior to the meeting to buy more U.S. product.
Moreover, Washington agreed to not levy 30% tariffs on $250 billion worth of Chinese products next week, raised from 25% import tariffs.

In addition, Trump asserted that it would take up to five weeks to get the deal written and that they were close to reach the deal.

 

After the announcement from Trump, Dow Jones closed the day with a surge of 320 points, increased 1.21%. S&P 500 gained 1.09% ans Nasdaq rose 1.34%.