American equities are set to fall on Monday morning after Bloomberg News reported that China wants more talks with the US before agreeing to Trump’s “Phase One” deal.
At 11:15 am in London, (7:15 am EST) US futures underlying the Dow, S&P 500 and Nasdaq were falling 0.5%, 0.5% and 0.6% respectively.
President Trump boasted of a partial trade deal agreed with China, which would stop a scheduled tariff hike on Tuesday from 25% to 30% if China upped its purchases of agricultural goods.
But Bloomberg, citing unnamed people familiar with the matter, on Monday morning reported that China wanted to “hammer out” the final details of the initial deal, before Xi Jinping agrees to sign it.
Bloomberg added that China may send another delegation to Washington, led by Vice Premier Liu He, to finalize that written deal. The Bloomberg sources also said that Trump may be planning to scrap the December tariff hike as well.
“Fake news? Maybe not entirely, but you can stick as much lipstick on it as you like and it will still be a pig,” said Neil Wilson, chief markets analyst at Markets.com. “The Trump trade deal looks to be unravelling. What’s concerning for the market is that the US and China are using different language to describe the deal and don’t seem to be on the page at all.
“It wasn’t even much of a deal in the first place – the fact that China is not yet even on board with it suggests very little progress has been made, and the possibility of further gains are limited,” Wilson added.
Read the full article at Business Insider.