Phase One Trade Deal shoots Dow passed 29,000 | Calamatta Cuschieri

US stocks closed higher with the Dow reaching a new benchmark after US President Donald Trump signed the first phase of a trade deal with China. The Dow Jones Industrial gained 90.55 points, or 0.3 percent, helping it break through the 29,000 barrier to 29,030.22. The S&P 500 index rose 6.14 points, or 0.2 percent, to 3,289.29 with the Nasdaq Composite Index advancing 7.37 points, or 0.1 percent, to end the session at 9,258.70.

European markets meanwhile ended mostly unchanged as the sessions ended with investors still waiting for any clues on when the phase one deal was to be signed later that evening. The pan-European Stoxx 600 index ended flat at 419.54, together with Germany’s DAX and France’s CAC 40 which closed at 13,443 and 6,036.30 respectively. The UK’s FTSE 100 managed to creep up 0.1 percent to end at 7,633.47.

Maltese markets slipped lower with the MSE Equity Total Return Index edging down 0.039 percent to 9,494.035 points. Shares in Malita Investments Plc led the gains and closed up 4.44 percent at €0.94, followed by Bank of Valletta Plc which added 1.42 percent to €1.075. Those gains however were unable to lift the day into the green as RS2’s 1.71 percent drop to €2.30 and Malta International Airport’s 0.72 percent retreat to €6.90 weighed on the index.

The US and China sign Phase One Trade Deal

After an 18-month trade dispute that has hit global growth, Presidents Donald Trump and Xi Jinping have announced that China will boost purchases of U.S. goods and services by $200 billion over two years in exchange for the rolling back of some tariffs under an initial trade deal signed by the world’s two largest economies. Chinese Vice Premier Liu He read a letter from President Jinping in which the Chinese leader praised the deal as a sign the two countries could resolve their differences with dialogue.

Commitments include $54 billion in additional energy purchases, $78 billion in additional manufacturing purchases, $32 billion more in farm products, and $38 billion in services, according to deal documents released by the White House and China’s Finance Ministry.

Trump, who has embraced an “America First” policy aimed at rebalancing global trade in favor of U.S. companies and workers, said China had pledged action to confront the problem of pirated or counterfeited goods and said the deal included strong protection of intellectual property rights.
 

This article was issued by Peter Petrov, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.