In the early hours of this morning, Donald Trump indicated that China has made more concessions on automotive trade. There have been reports that China has agreed to ‘reduce and remove’ tariffs below the 40% level that is currently being imposed on imports of US cars. Trump and Chinese leader, Xi Jinping, held talks in Argentina on Saturday and agreed to halt new tariffs.
The announcements represent a potential breakthrough in the trade war that has been going on for some time now, and we can expect some market reactions as we learn more and more about the deal.
Today’s manufacturing PMI reading completes the full house for the UK, Germany, eurozone and the US. The ISM reading is expected to climb a little higher to 58.0 from 57.7 in the previous period, which would merely confirm the US economy is in a period of rude health at present. On Thursday, we will see the latest balance of trade figures, followed by non-farm payrolls on Friday.
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