When it comes to trade deals, size may matter, but smaller is also better than nothing at all. Delegates from China and Trump Administration officials started two days of trade meetings today in Washington and it looks like a “mini deal” is what’s on the table.
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Although President Trump has long rebuked the idea of a small trade deal with China, that may be what ultimately comes of the two-day meeting and stocks seem to like the idea. Trump posted on Twitter earlier today that he plans to meet with Vice Premier Liu He tomorrow.
“The White House is looking at rolling out a previously agreed currency pact with China as part of an preliminary deal that could also see a planned tariff increase next week suspended,” reports Bloomberg. “Separately, Bloomberg is reporting that China plans to ask the U.S. to lift sanctions on its biggest shipping company, citing people familiar with the matter.”
Geopolitical negotiations are like any other negotiations: it’s all about compromise and compromise is all about both sides feeling like they’re benefiting. In other words, Trump probably won’t get the all or nothing trade deal he wants and financial markets seem to be at peace with that.
The Nasdaq Composite added 0.60% today, while the S&P 500 gained 0.64%. The Dow Jones Industrial Average climbed 0.57% with just over two-thirds of the index’s 30 members higher in late trading.
Construction machinery maker Caterpillar (NYSE:CAT) was one of the Dow’s top performers today, adding 2.7%, in a move that’s likely attributable to the aforementioned traded news as Caterpillar is one of the more trade-sensitive names in the Dow.
Shares of Caterpillar have been in a funk recently, sliding more than 8% over the past month, a tumble