Investors welcomes news of progress in commercial talks between the United States of China; High futures in American stocks

Written by Suzan McKiji

(Reuters) -Investors welcomed interests in the trade talks between the United States of China this week, aiming to cool a trade war between the world’s largest economists and waste some financial markets that weaken in uncertainty, although few expect a great penetration so far.

In a sign of relief from investors that the worst commercial war in the United States of China may be avoided, futures in the United States rose on Sunday evening. S&P 500 E-MINIS increased by 1.3 %, while Nasdaq Futures added 1.6 %.

Both sides refused to clarify the negotiations, saying that more details will be issued on Monday, although US Treasury Secretary Scott Bessin and Trade Representative, Jameson Jarir on Sunday, said that a deal had been reached with China to reduce the US trade deficit.

Chinese Deputy Prime Minister Living, whose counterparts in the United States met in Geneva, described the meeting as “explicit” and a first important step.

“This is a step in the right direction, it explains that both sides are interested in reaching the conclusion of building and developing a better business relationship,” said Eric Kobe, chief investment official at North Star Management in Chicago.

“The details are very shallow, but I think the trend seems more collaborative, not fighting, and I think we must look at this as positive.”

A meeting in Switzerland can define one of the largest developments since US President Donald Trump launched a sweeping tariff on April 2, which threw the global trade scene in chaos and eliminates the fluctuations of the market.

Recently, investors have been optimistic that the worst commercial scenarios will not pass, and they pointed to the signs of canceling the escalation between the United States and China as a reason behind a recovery in stocks.

“The markets may be encouraged by some agreement on a deal, but it will remain suspended on more details that are issued,” said Gennadi Goldberg, head of the American interest rate strategy at TD Securities in New York.

“The recent procedures indicate some optimism about a commercial deal. If it turns out that this is the case, pricing will be justified. The risks are if the deal is less essential than expected. Then the market may disappoint.”

In fact, despite President Donald Trump’s comments before talks indicating the low level of Chinese definitions and a commercial agreement announced on Thursday between the United States and Britain, many market participants said they do not expect significant breakthroughs.

“I am not sure that I will strike the” buy “button on what we heard today, but if we can make my objective progress with China, I think the market will like it.”