US President Donald Trump last night stated that he will not be imposing additional tariffs on China for now, even though the deadline for his temporary ceasefire with China expires this Friday. This extended period of grace is due to the positive developments in the trade negotiations between the two countries.
According to the latest information from insiders, China and the United States are working on a trade agreement. Donald Trump stated said that he is ready to receive the President of China in Florida to finalize and sign the agreement into effect as soon as it is prepared.
This news has been very well received by the financial markets. European shares were all up, with the STOXX 600 and DAX gaining 0.2% each, which are the highest values for the last four months. Moreover, the stock shares of car manufacturers are up by 1.1%.
In general, whenever we receive good news about the possible end of the trade war and a resolution in the form of an official trade agreement, the financial markets relax and instruments strengthen. We expect the good mood to continue this week.
