US President Donald Trump indicated on Monday that they are “ahead of schedule” on preparing the trade agreement with China for signing at APEC summit in Chile on November 16-17. He said “we’ll call it Phase One but it’s a very big portion.” Also, the deal would “take care of the farmers” and “also take care of a lot of the banking needs.” Meanwhile, US Trade Representative said it is studying whether to extend tariff suspensions on USD 34B of Chinese imports. The exemptions would expire on December 28 this year.
US stocks responded positively to recent trade developments. DOW rose 0.49% overnight, while S&P 500 rose 0.56%. NASDAQ rose 1.01%. S&P 500 hit new record high at 3044.08 and touched 61.8% projection of 2728.81 to 3027.98 from 2855.94 at 3040.82. Firm break of this projection level will be an indication of underlying medium term momentum. Next target will be 100% projection at 3155.11.
