Update (Oct. 10, 2019, 6:00 p.m.)
President Donald Trump expressed optimism in the first day of resumed trade talks between the United States and China.
In a Thursday afternoon interview with reporters, the U.S. leader said that negotiations were “going really well.” (Trump was en route to a campaign rally in Minnesota as delegates from the two countries were preparing for a scheduled dinner.)
“We had a very, very good negotiation with China,” he added. “They’ll be speaking a little bit later, but they’re basically wrapping it up, and we’re going to see them tomorrow right here.”
The president is set to meet with Chinese Vice Premier Liu He on Friday. The Dow Jones Industrial Average closed 150 points higher, while the S&P 500 and the Nasdaq Composite ended the day up nearly 19 points and 47 points, respectively.
What FN Reported (Oct. 10, 2019, 10:30 a.m.)
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The stock market surged in the green on Thursday after President Donald Trump confirmed that he would meet with a top Chinese negotiator on Friday to potentially hammer out a deal that would end the yearlong financial dispute between the United States and China.
The Dow Jones Industrial Average jumped 172 points, while the S&P 500 and the Nasdaq Composite showed respective gains of 17 points and 54 points. On Twitter, the U.S. leader wrote, “Big day of negotiations with China. They want to make a deal, but do I? I meet with the Vice Premier tomorrow at The White House.”
Negotiators from the world’s two largest economies are scheduled to meet today, marking the first meeting between high-level delegates since late July.
It was initially reported that Trump would meet with Chinese officials on Friday if today’s high-level talks go well. However, investors were sent on a wild ride overnight following Wednesday’s report from the South China Morning Post suggesting Chinese Vice Premier Liu He and Chinese delegates would take off on Thursday night instead of Friday, as expected — signaling to investors that a meeting between Trump and Chinese officials was off the table. Stock futures took a dive on the news but recovered when a White House spokesperson denied the accuracy of the report.
There’s been a lot of speculation ahead of this week’s meetings. Earlier in the week, China reportedly indicated that it would be open to accepting a partial deal if Trump nixed the upcoming planned tariff hikes. A proposed tariff rate starting Oct. 15 boosts to 30% an existing duty of 25% already in place on $250 billion worth of Chinese goods. Additionally, a 15% levy on $188 billion in Chinese products is set to be implemented on Dec. 15.
In exchange for the Trump administration’s compliance in dropping planned hikes, China would reportedly offer the U.S. “non-core concessions,” including the increased purchase of agricultural products.
Separately, a Bloomberg article shared today noted that the U.S. was weighing a previously agreed currency pact with China as part of the limited trade deal, which could result in the suspension of next week’s tariff hike.
China Open to Partial Trade Deal — but Only If Trump Drops Upcoming Tariff Hikes
Run the Numbers: Less Than Half of Americans Will Buy a Product That Costs More Due to Tariffs