U.S-China closer on achieving a deal

Daily Analysis - 03/04/2019

China wants U.S to remove existing tariffs

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According to the Financial Times, Chinese and American executives are setting a trade agreement to solve most of the outstanding problems. However, they are still arguing on how to execute and implement such an agreement.

Both China and the U.S need to accept and agree on a number of significant problems. China wants the U.S to withdraw the existing U.S. taxes on Chinese products, while on the other hand, the United States wants China to accept a number of terms that ensure that China will respect the deal. U.S. and China have raised taxes on each other's products since 2018. That fact has interrupted supply and increased the expenses for businesses.

DOW fell for the first time in 4 days


On Tuesday the popular Dow Jones Industrial Average dropped for the first time in four days while traders still analyze a strong increase from the previous trading session. Nasdaq Composite advanced more than 0.20% and closed at 7,848.67. The Dow finished 79.28 points below at 26,179.12. The S&P 500 closed the day above the range at 2,867.23.

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Brent went up 35 cents


On Wednesday Oil prices climbed for a fourth consecutive day, with assistance from the U.S. sanctions and OPEC-led supply cuts dominating an industry statement showing a surprising increase in U.S. stock the past week. U.S. West Texas Intermediate crude grew 22 cents, to $62.79 cents a barrel, earlier growing to $62.90, the highest level since late 2018.

Brent futures advanced 35 cents, to $69.70 a barrel touching earlier $69.86, again the highest level since late 2018.

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Asian stocks went up on US-China trade deal


On Wednesday Asian stocks moved higher after a statement that the U.S. and China are getting close on entering a trade deal. Japan Nikkei 225 scored more than 0.80% in late trade while the Topix index grew about 0.5%. Hong Kong's Hang Seng index increased by 0.86%, while Chinese shares of Tencent jumped 2.4% after an earlier touch of its highest level since last year.

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