US Stock Market Wobbles as China Trade Talk Sentiment Sours
The US stock market stumbled after Bloomberg reported that Donald Trump and Xi Jinping would not meet until April, at the earliest. | Source: GREG BAKER / AFP
The US stock market has been riding a wave of optimism stemming from optimism about a swift resolution to the ongoing US-China trade talks. However, President Donald Trump’s comments are now swinging from a “good chance” of an immediate deal to claims that he is “not in a hurry” to make one. Meanwhile, reports are breaking that further meetings between Washington and Beijing won’t happen until April, at the earliest, and the US stock market is not taking the news well.
Dow Jones Futures Visibly React to Trade Deal Delay
Bloomberg broke the news that the much-anticipated meeting between Donald Trump and Xi Jinping would not take place until April – at the earliest – leading to a visible skid in the Dow futures market on Thursday morning.
Bloomberg, citing three sources, reported that the meeting between Trump and Xi Jinping wouldn’t happen in March – this despite earlier reports of an upcoming resolution that would scrub the threat of no-deal tariff hikes threatening both the US and Chinese economies.
One source predicts the meeting won’t happen until the end of April, “if it happens at all.” China is reportedly also pushing for a formal state visit, which could indicate that there is still much to discuss. This is supported by U.S Trade Representative Robert Lighthizer’s recent comments that “major issues” are outstanding.