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Capital market impact

Capital market impact

Trade optimism drives modest rebound in equities

President Trump announced a “phase 1” deal was reached between the U.S. and China. Specifics at this point are limited to delayed tariff implementation and agricultural purchase, with non-specified progress on more structural issues that will require phases 2 and 3. The news was sufficient to break a three-week losing streak for equities, but skepticism is warranted given the whipsaws driven by trade headlines over the past year. 

Capital market impact

Markets stall despite wave of news

Deputy-level meetings between the U.S. and China are ongoing, though no detailed progress has been made and President Trump expressed skepticism of a partial deal. Observers worried that the cancellation of a Chinese trade delegation’s trip to American farm sites was a signal of a breakdown in talks, though Chinese officials said it had “nothing to do” with talks, which they describe as “productive” and “constructive.”