Trade News Leaves Investors Cautiously Optimistic

December 13, 2018
559 Views

Investors ended Wednesday slightly upbeat with some much-needed positive trade news hitting the headlines. While the international trade disputes are far from over, some key stories regarding Chinese-American relations have left positivity in the market, even if it may be short lived in this month of high volatility.

China is Prepared to Make Changes to Accommodate Foreign Businesses

China has agreed to restart soybean purchases from the United States, and President Trump has already said that China is purchasing a “tremendous amount” from American farmers.

The Wall Street Journal has also reported that China is drafting a plan to give foreign companies better access to the Chinese market. According to the Journal, China would lessen its aggressive policies to dominate worldwide manufacturing and will instead start to implement steps that make it a leader in electric vehicles, high-tech industries, and robotics. China is already one of the largest markets for electric vehicles.

While effective changes may still be far away (reportedly not until 2025), a planned shift in Chinese economic policy could be enough to build trust with White House trade negotiators.

President Trump Said he May ‘Intervene’ on Huawei CFO Extradition

The President said this week that he would be willing to intervene with America’s extradition request for Huawei CFO Meng Wanzhou.

In an interview with Reuters News, President Trump said that “If I think it’s good for the country, if I think it’s good for what will be certainly the largest trade deal ever made, which is a very important thing, what’s good for national security… I would certainly intervene if I thought it was necessary.”

Meng is currently facing extradition from Canada in relation to charges that Huawei conducted business with Iran, despite ongoing sanctions. Huawei has denied any wrongdoing and the Chinese government has condemned the arrest and pending extradition case.

Trade News Markets Closed Up Slightly Mid-Week

Markets were more positive following the trade related news, with the Dow Jones Industrial Average, NASDAQ Composite, and S&P 500 all making slight gains by the closing bell on Wednesday.

Trade has been a significant stock market factor this year, often leading to negative investor sentiment. The closer that the U.S. gets to a new deal with China, the healthier the American investment market will be.

You may be interested

Job Hiring is Picking Up as Employers and Consumers Gain Confidence
Economy
548 views
Economy
548 views

Job Hiring is Picking Up as Employers and Consumers Gain Confidence

Lamont J - March 29, 2021

The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…

Fed Could Maintain 0% Interest Rate Until 2024
Economy
489 views
Economy
489 views

Fed Could Maintain 0% Interest Rate Until 2024

Adam R - March 26, 2021

The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…

Supply Constraints Could Slow the Home Market
Economy
555 views
Economy
555 views

Supply Constraints Could Slow the Home Market

Becky H - March 25, 2021

Low inventory has been a constant in the home market for more than a year. The supply of existing and…