U.S. stocks moved upwards again at the close on Wednesday. All major indexes ended in the green thanks to renewed optimism on the trade front. According to Washington insiders, a new trade deal is nearly completed, with just a few issues to work out between the United States and China.
The most recent round of negotiations began in China last week and will continue in Washington throughout this week.
Could we be moving closer to what is likely to be the most important trade deal of this generation?
Trade Deal is Reportedly 90% Complete
Negotiators have remained tight lipped regarding their progress on a new deal. Previous statements have been positive, but representatives from both sides have refrained from sharing deadlines or any kind of meaningful data.
This has now changed, with a Washington insider stating that a new deal is 90% complete.
Myron Brilliant, the Executive Vice President for International Affairs at the U.S. Chamber of Commerce told media this week that “Ninety percent of the deal is done, but the last ten percent is the hardest part, it’s the trickiest part and it will require trade-offs on both sides.”
While the Chamber of Commerce is an independent lobbying organization, it has deep ties to the United States government, especially the Republican party. The Chamber is by far the largest lobbying organization in the U.S., spending more money on its political activities than any other group. While Brilliant’s statement doesn’t carry as much weight as official word from the White House, it comes as close as any independent organization could get.
Wall Street Journal Optimistic That a Trade Deal is Nearing
The Wall Street Journal is another major independent organization that believes a trade deal is coming very soon. In a recent report, the Journal revealed that a signing summit date is “likely” to be announced when President Trump meets with Chinese Vice Premier Liu He this week. Americans could know by Friday whether a deal has been struck.
If negotiators have been able to reach mutually agreeable terms, this would be one of the most significant economic agreements ever signed.
China remains the largest trading partner of the U.S., and it sells much more annually than it buys. A new deal is expected to address the trade deficit, intellectual property theft, and concerns that China is subsidizing its own industries to undermine the U.S.
Stocks have remained strong this week on the back of positive trade news. A finalized deal could carry momentum in the stock market throughout this year.
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