As the one trade deal’s signing nears, investors are waiting intently for some specifics about it. Adam Crisafulli, the founder of Vital Knowledge, wrote last week, that it isn’t clear what Trump and Liu He will affix their signatures to. According to the agreement between the two countries, the phase one trade deal significantly increased Chinese purchases of American products and reduce tariffs. The historical event is scheduled for Wednesday, January 15.
Meanwhile, the U.S. announced China’s removal from a list of countries, which are considered as currency manipulators. Treasury Department made the formal designation list last August. The U.S.’s decision has almost sent the stock market skyrocketing again on Monday. This remarkably lifted the mood on Wall Street.
Treasury Secretary Steven Mnuchin revealed that the agreement would be “a very, very extensive.” However, despite the U.S.’s new compromise, the Chinese government doesn’t seem inclined to extend the same courtesy. The South China Morning Post shared that their authorities announced that the trade war isn’t over yet.
Edward Moya, the senior market analyst at Oanda, believes that though the markets are content at present, there is a big chance that China won’t uphold all the terms of the deal. “At least we’re not going to have a spiraling of tariffs, as they will derail the global growth outlook,” – says Moya.
The Dow Jones, Nasdaq, and S&P 500 Continue to Gain
Despite such uncertain predictions, Nasdaq and S&P Composite indexes increased by 1.04% and 0.70%, which is the new record high. The Dow Jones Industrial Average is also rising, reaching 0.30%. Last Friday, it beat the 29, 000 mark for the first time.
Apple and Tesla were also among those stocks which gained the most on Monday. Apple stock still rides its high from 2019. Being Dow Jones’ best performer, it increased by more than 2%. Tesla shares surpassed the $500-per-share mark, rising almost by 10%.