Dow Jones down as US-China trade talks stall
The Dow Jones is down after reports that Trump and Xi won't meet.
The Dow Jones is sliding after reports that US President, Donald Trump, and Chinese president, Xi Jinping, are not scheduled to meet to end the US-China trade impasse before a March 2 deadline. US stocks have fallen by as much as 300 points.
How are the US-China trade talks affecting the stock market?
While there have been reports that US Treasury Secretary, Steven Mnuchin, and US Trade Representative, Robert Lighthizer, will negotiate with Chinese Vice Premier, Liu He, the news about Trump and Xi is worrying investors. Trump has said that there can’t be a proper trade agreement unless the two presidents have a summit. While Trump and Xi are not scheduled to meet, Mnuchin is not ruling out a conference in the future.
‘I can tell you there's nothing planned at this time for it, but the president has talked about potentially meeting with President Xi and we'll see what progress we make next week,’ said Mnuchin.
White House economic adviser, Larry Kudlow, expressed more pessimism about the US and China agreeing on a trade deal.
‘We’ve got a sizable distance to go to go here,’ said Kudlow in an interview.
Sam Stovall, investment strategist at CFRA Research, noted that the lack of movement on a trade deal could be part of a larger problem with the global economy. Stocks for companies that are symbols for global trade, like Caterpillar and Boeing, have tumbled as a result of the news about Trump and Xi.
‘The keystone in the wall of worry is the trade discord. Should the negotiations crumble so too will near term support for equity prices,’ said Stovall.
What’s next for Wall Street?
The Dow Jones was on a five-day winning streak on the strength of strong earnings reports before the latest decline in stocks. However, with this latest slowdown in negotiations between the US and Chinese presidents at a standstill, the Dow Jones is concerned that the trade impasse between the two nations will continue past March.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.