Orbex Market Flash

Risk Assets Rally As Second Round Of US/China Trade Talks Get Under Way

0 487

US and Chinese officials began a second round of trade talks yesterday in Beijing. The meeting comes over a month after initial talks between Trump and Xi Jinping were held on the sidelines of the G20 summit in Argentina just over a month ago.

The talks in Argentina concluded with President Trump agreeing to put a freeze on all current tariffs at 10%. This levy had been due to increase to 25% in January, but Trump agreed to a 90 day probation period to allow for trade talks aimed at securing a trade deal between the world’s two largest economies.

Trading the news requires access to extensive market research - and that's what we do best. Open your Orbex account now.

The impact of the trade war has come under fresh focus recently after both the US and China posted significantly weaker manufacturing PMI results for December with the Chinese reading falling into contractionary territory for the first time since mid-2017, with the strong downward trend of the last year worrying investors and businesses alike.

manufacturing pmi

While there is still a lot of work to be done, especially around key hurdles such as industrial policy and intellectual property, the market is seeing a strong relief rally this week as talks get underway and traders will be keenly awaiting the first details to be released on the back of the talks.

Technical Perspective


The S&P continues to fight for higher ground, having now moved through two key levels of resistance on its recovery run. Price is now fast approaching the 2604.37 level which is a key medium-term pivot for price. Above here, and bulls will have renewed conviction while a stall and reversal here might pave the way for fresh lows over the coming month.


or practice on DEMO ACCOUNT

Trading CFDs Involves high risk of loss

Leave A Reply

Your email address will not be published.