The armistice does not leave the American -Chinese trade more wisdom

Written by Iqbal Ahmed and Akour Panerry

NEW YORK/SENGAFORA (Reuters) -The latest commercial truce between China and the United States provides investors that the hope that the great powers can reach a permanent solution and prevent more market turmoil, but the lack of detailed terms leaves room for possible future tariff conflicts.

President Donald Trump said on Wednesday that the American deal with China has ended, even though Beijing is available magnets and rare ground minerals, while Washington will allow Chinese students in American colleges and universities.

Chinese Deputy Minister of Trade Lee Chenggang said on Tuesday that the teams negotiating with the United States and the United States agreed to a trade framework two days after the talks, and will return to its leaders.

A White House official said the agreement allows the United States to impose fees on imported Chinese goods at 55 % on imported Chinese goods.

Wall Street shares decreased, while the dollar fell. Chinese stocks rose to the highest level in three weeks.

The thermal reaction from currencies and stock investors showed that while the meeting ended in the armistice, the markets were hoping for more. Lack of details means that uncertainty is likely to remain high.

“Details are rare, and both sides claim that their needs are satisfied … but this issue is not close to the settlement,” said Chris Grisante, the market’s chief strategy in the market.

Analysts said the main positive meal is the talks that referred to pragmatism on both sides. While the results of the conversations supported the risk assets, the investors seemed to be awake.

“Satan is in detail … and the other big news is that the United States and the two appears to have a framework for more discussions, and this contradicts a statement” it is a deal that has been accomplished. “

With most negotiations with Trump’s deadline on July 8 to stop for 90 days on the definitions of trading partners in the United States, investors remain monitoring.

The markets decreased after the Trump’s “Tahrir Day” tariff on April 2, when investors worried about the imminent recession, but those concerns retreated when Trump retreated most of the punitive definitions.

The S& P 500 normative index increased by more than 20 % of its lowest level in April, which is close to recovering the record. Chinese stocks have been less than the constant performance of investors than the weak economy, but they have nevertheless regained the losses to return to the level of April 2.

Rural tariff

US Secretary of Trade Howard Lootnick said that the recent plan to package a deal that puts “meat on the bones” reached last month in Geneva to alleviate the bilateral revenge definitions that have reached trilogy levels.