Stocks seen drifting lower ahead of signing of U.S.-China trade pact

U.S. stock-index futures were edging lower on Wednesday as investors awaited the signing of a partial Sino-American trade pact later in the session, amid a rollout of quarterly corporate earnings results.

The hoped for improvement in U.S. – China trade relations might not be immediately achieved though, with key issues left unresolved, including existing tariffs and efforts to impose restrictions on China’s Huawei Technologies Co.

How are benchmarks performing?

Futures for the Dow Jones Industrial Average YMH20, -0.10% are off 54 points, or 0.2%, at 28,881, those for the S&P 500 index ESH20, -0.05% are off about 0.1% at 3,285.75, a decline of 2.15 points, while Nasdaq-100 futures NQH20, +0.04% gave up less than a point at 9,061.75.

On Tuesday, the Dow DJIA, +0.11% closed up 32.62 points, or 0.1%, at 28,939.67 while the S&P 500 index SPX, -0.15% lost 4.98 points, or 0.2%, to finish at 3,283.15. The Nasdaq Composite Index COMP, -0.24% ended with a loss of 22.60 points, or 0.2%, at 9,251.33.

What’s drove the market?

U.S. and Chinese delegates are expected to sign a long-awaited preliminary trade pact at 11:30 a.m. Eastern Time at the White House, but doubts remain about the substance of the deal and whether it can lead to a genuine detente between the global superpowers. According to the Wall Street Journal, the first phase of the trade deal will include roughly $200 billion in Chinese purchases of American goods and services over the next two years.

However, tariffs on some $360 billion of annual Chinese goods will remain in place, with reports by Bloomberg News of that development on Tuesday causing markets to trim strong gains and turn negative.

The text of the trade deal is expected to be released later Wednesday morning, which will also be pored over by investors, who

Read More Here...

Bookmark the permalink.

Comments are closed.