US and China trade deal probable after positive talks
Us President Donald Trump took to twitter on Sunday saying he had a “long and very good call” with Chinese President Xi Jinping, alluding to a possible trade deal in progress.
Trump took to twitter on Sunday saying he had a “long and very good call” Xi and that trade deals were in progress.
Trump tweeted: “Just had a long and very good call with President Xi of China.”
Chinese media reported that Xi and Trump spoke on Saturday, with Xi saying that teams from both countries had been working to reach consensus.
“I hope that the two teams will meet each other half way, work hard, and strive to reach an agreement that is mutually beneficial and beneficial to the world as soon as possible,” Xi said to Xinhua news agency.
China and the US have had trade tensions throughout 2018 which caused on-going volatility in financial markets over tariffs distruptions.
Analysts say Trump's tweets show talks are moving toward resolution in 2019.
‘It adds to what appears to be positive momentum in working towards a trade-resolution, at a time where Chinese equity equities keep plumbing to new lows, and fears mount for the health of the Chinese economy and financial markets.’ IG market analyst Kyle Rodda said.
Government shutdown enters ninth day
The US government shutdown has entered its ninth day on Monday, after the shutdown affected almost one quarter of the federal government.
IG market analyst, Kyle Rodda said the market is constantly impacted by what the US Federal Reserve will do.
‘A great many think that the Fed is overestimating the strength of the US economy and will lean on it in such a way that it will exacerbate a looming economic slow-down, so much so that the Fed hikes have been effectively priced out for the next year’ Mr Rodda said.
The next central bank’s meeting isn’t till January 31st, which could open the chance of another volatile month kicking off trade for 2019.
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