Today is the day many have been waiting for as China and the US are expected to officially ink their phase one trade deal later this morning. In a potential “buy the rumor, sell the news moment,” Asian equities finished the day lower, and European equity indices are currently mixed, but little changed as are US equity futures. Weighing on the market’s trade deal mood are recent comments that existing tariffs on “billions of dollars” of Chinese goods coming into the US are likely to remain in place until after the US presidential election and the completion of the phase two agreement. Moreover, it’s being reported US and China have “an understanding” that no sooner than 10 months after the signing of the agreement, the US will “review progress and potentially consider additional cuts on tariffs affecting $360 billion of imports from China.”
To some this likely raises some questions over the scale and scope of the phase one agreement, the full text of which is expected to be released…
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