Wall Street slips from record high on volatile day, ahead of US-China trade deal signing

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The Australian share market is expected to have a lacklustre start to the day ahead of the imminent signing of a US-China trade deal.

Markets at 8:05am (AEDT):ASX SPI futures +0.1pc at 6,916, ASX 200 (Tuesday’s close) +0.9pc at 6,962AUD: 69.03 US cents, 53 British pence, 62.02 Euro cents, 75.91 Japanese yen, $NZ1.04US: Dow Jones +0.1pc at 28,940, S&P 500 -0.2pc at 3,283, Nasdaq -0.2pc at 9,251Europe: FTSE 100 flat at 7,622, DAX flat at 13,456, CAC +0.1pc at 6,041, Euro Stoxx 50 -0.2pc at 3,773Commodities: Brent crude +0.7pc at $US64.64/barrel, spot gold -0.1pc at $US1,546.55/ounce, iron ore +1.1pc at $US97.03/tonne

By 7:30am (AEDT), ASX futures were flat (up by just one point).

The Australian dollar, meanwhile, is steady at 69.03 US cents.

Wall Street had climbed to fresh record highs at midday (local time), before changing course and falling into the red.

Investor sentiment turned sour on reports that the Trump administration would likely keep its punitive tariffs on $US360 billion worth of China’s imported goods through to the US election in November.

The eventual removal of tariffs by Washington would depend on Beijing’s compliance with the “Phase One” trade deal, according to a Bloomberg report, citing sources.

Details of the agreement have not yet been made public, but are slowly emerging.

China has pledged to buy almost $US80 billion of additional manufactured goods from the US over the next two years as part of a truce, a source told Reuters.

Furthermore, China would buy in excess of $US50 billion more in energy supplies and boost purchases of US services by about $US35 billion over the same two-year period.

It comes as the US retracted its accusation

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