You are here: Home » News-CM » International » Market Report
Business Standard

US Market climbs as US, China reach tentative trade deal

Capital Market 

The US stock market finished session higher on Thursday, 12 December 2019, as appetite for riskier assets underpinned on renewed trade agreement optimism after President Donald Trump statement that the U. S. is getting close to a "big deal" with China. Traders were also encouraged by reports that Washington has offered to slash existing tariffs and cancel new ones set to kick in on Sunday in exchange for more agricultural purchases and intellectual property protection. At closing bell, the Dow Jones Industrial Average rose 220.75 points, or 0.79%, to 28,132.05, the S&P 500 gained 26.94 points, or 0.86%, to 3,168.57, and the Nasdaq Composite added 63.27 points, or 0.73%, to 8,717.32.

Traders risk sentiments bolstered on hopes that the trade spat between the world's two largest economies may finally come to an end after President Donald Trump statement that the U. S. is getting close to a "big deal" with China. Traders were also encouraged by reports that US and Chinese negotiators have agreed in principle to the "phase one" trade deal. Washington has offered to slash existing tariffs and cancel new ones set to kick in on Sunday, December 15, in exchange for more agricultural purchases and intellectual property protection.

China's Ministry of commerce said on Thursday that its negotiators were in "close communication" with their American counterparts ahead of the new round of tariffs, but gave no indication whether the trade talks were making progress.

But late Thursday, Myron Brilliant, head of international affairs for the U. S. Chamber of Commerce, confirmed that both sides were close to inking a modest trade deal that would suspend the new tariffs and reduce existing ones by an unspecified amount. In return, China would buy more U. S. farm products, increase American companies' access to the Chinese market and tighten protection for intellectual property rights, said Brilliant, who has been briefed by both sides.

Facebook Inc shares fell 2.7% after reports that the U. S. Federal Trade Commission is considering seeking a preliminary injunction against the social media company.

Delta Air Lines Inc shares rose 2.9% as the company projected another annual rise in profit and revenue in 2020.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 13 2019. 07:42 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU