Entering into US session, Euro is trading as the lowest one for today, followed by Swiss Franc, in relatively mixed markets. New Zealand Dollar is the strongest one while Australian Dollar recovers much of yesterday’s losses. But for now, pre-weekend recovery in Sterling put it into second place. But movements in the currency markets are relatively limited. Thus, the picture could have a drastic change at close.
US-China trade negotiations were the main focus of the day. Words from both sides were positive, but without much substance. China’s Xinhua news agency said the delegations discussed topics including technology transfers, intellectual property protection, non-tariff barriers, services, agriculture and the trade balance. And both countries reached consensus is principle on a number of issues. They’re working towards a memorandum of understanding on trade and economic issues.
White House spokesperson Sarah Sanders confirmed that trade talks with China will continue in Washington next week. She said “The United States looks forward to these further talks and hopes to see additional progress.” And, “Both sides will continue working on all outstanding issues in advance of the March 1, 2019, deadline for an increase in the 10 percent tariff on certain imported Chinese goods.”
US Trade Representative Robert Lighthizer said “we feel we have made headway on very, very important and difficult issues. We have additional work to do but we are hopeful,” Treasury Secretary Steven Mnuchin tweeted “Productive meetings with China’s Vice Premier Liu He and @USTradeRep Amb. Lighthizer”, without any elaboration.
But the development so far seems to be enough to lift sentiments slightly. DOW futures in currently up 76 pts.
In Europe:
- FTSE is up 0.55%.
- DAX is up 1.39%.
- CAC Is up 1.44%.
- German 10-year yield is down -0.0032 at 0.104, holding on to 0.1 handle.
Earlier in Asia:
- Nikkei dropped -1.13%.
- Hong Kong HSI dropped -1.87%.
- China Shanghai SSE dropped -1.37%.
- Singapore Strait Times dropped -0.41%.
- Japan 10-year JGB yield dropped -0.0114 to -0.022, staying negative.
Statement from US and China regarding trade negotiations
Here is the statement of the US.
Statement by the Press Secretary Regarding China Talks
This week, at the direction of President Donald J. Trump, officials from the United States traveled to Beijing to continue negotiations on the trade relationship between the United States and China. On the United States side, the talks were led by Ambassador Robert E. Lighthizer, the United States Trade Representative, and the Honorable Steven T. Mnuchin, the Secretary of the Treasury. On the Chinese side, the talks were led by Vice Premier Liu He. On Friday, both delegations had the opportunity to meet with President Xi Jinping regarding their discussions. The talks also featured extensive technical exchanges between the professional staffs of both countries.
These detailed and intensive discussions led to progress between the two parties. Much work remains, however. Both sides will continue working on all outstanding issues in advance of the March 1, 2019, deadline for an increase in the 10 percent tariff on certain imported Chinese goods. United States and Chinese officials have agreed that any commitments will be stated in a Memoranda of Understanding between the two countries.
During the talks, the United States delegation focused on structural issues, including forced technology transfer, intellectual property rights, cyber theft, agriculture, services, non-tariff barriers, and currency. The two sides also discussed China’s purchases of United States goods and services intended to reduce the United States’ large and persistent bilateral trade deficit with China.
Next week, discussions will continue in Washington at the ministerial and vice-ministerial levels. The United States looks forward to these further talks and hopes to see additional progress.
Source.
Here is the statement from China.
China, US conclude new round of high-level economic, trade consultations
China and the United States held the sixth round of high-level economic and trade consultations in Beijing from Thursday to Friday.
Present at the talks were Chinese Vice Premier Liu He, also a member of the Political Bureau of the Communist Party of China Central Committee and chief of the Chinese side of the China-US comprehensive economic dialogue, US Trade Representative Robert Lighthizer, and Treasury Secretary Steven Mnuchin.
The two sides earnestly implemented the consensus reached by the two heads of state during their Argentina meeting late last year, and had in-depth communication on topics of mutual concern including technological transfer, intellectual property rights protection, non-tariff barriers, the service industry, agriculture, trade balance and implementation mechanism; as well as on issues of China’s concern.
Both sides reached consensus in principle on major issues and had specific discussions about a memorandum of understanding on bilateral economic and trade issues.
The two sides said they will step up their work within the time limit for consultations set by both heads of state, and strive for consensus.
They agreed that consultations will be continued in Washington next week.
Source.