After nearly two months of intense trade negotiations (within the context of over a year and a half in talks), China and the United States seem unlikely to reach a last-minute agreement to come into effect before this Sunday’s scheduled new tariffs. Despite positive statements from the governments of both countries, it is unlikely that Trump and Xi Jinping will be able to meet up and ratify the phase-one deal in the next three business days.
The lack of improvements on the trade front has had a particularly negative impact on the stock markets around the world. The Dow and Nasdaq futures indices, as well as Stoxx 50 and DAX in Europe all marked losses; Asian markets struggled as well.
Meanwhile, today we expect to finally see the Democratic Party formally charge President Donald Trump with impeachment, likely on two separate grounds. This will start a trial whereby the President will have to defend himself and hope that Congress will vote to exonerate him. Otherwise, he will be removed from office.
Later in the day we also expect a report on US oil supplies by the API. Oil prices have been volatile lately due to the slowing demand for oil and the drops in industrial production around the world, despite OPEC’s commitment to keep production levels low.
