Wall Street loses gains on reports of China trade push back
US markets have given up gains on Wednesday, as reports emerge of a China trade deal push back
Trade fears have resurfaced as reports indicate that China could take back some of its pledges made in talks with US negotiators.
A Bloomberg report has indicated that US negotiators are concerned China has gone back on their word to adhere US demands during trade talks, according to sources.
It’s reported that Chinese officials have changed their tune because they haven’t received assurances from US officials on lifting tariffs.
China had also stepped back from its initial promises over data protection of pharmaceuticals.
Trump remains tight-lipped on trade woes
Trump has not indicated any trouble-talks with China, as he addressed the media during a White House conference on Tuesday.
‘Talks with China are going very well.’ Trump told reporters.
Wall street loses gains
In response to the news, the benchmark S&P 500 index remained unchanged on Tuesday, while financial stocks weighed on all three major US stock indexes.
The Dow Jones Industrial Average fell 0.1%, to 25,887.38, the S&P 500 lost 0.01%, to 2,832.57 while the Nasdaq Composite added 9.47 points, up 0.12 %.
11 major sectors of the S&P 500, closed in the red, with utilities and financials leading losses.
US trade representative Robert Lighthizer and Treasury secretary Steven Mnuchin will travel to Beijing the week of March 25 for high-level talks to try and negotiate a deal.
Federal Reserve’s two-day policy meeting
IG market analyst Kyle Rodda says fears of another trade-war has downed sentiment.
He said, the S&P500 has closed flat on Wednesday as moves in rates and bond markets suggest the fundamentals currently remain the same.
‘The all-important balance between financial conditions and growth expectations is still there, ultimately supporting the bullishly inclined, as markets now prepare for tomorrow morning’s meeting of the US Federal Reserve.
The Fed have convened a two-day policy meeting on Wednesday, with investors expecting little change in its measured approach to interest rate hikes.
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