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US Market gains ahead of US-China phase one deal sign

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The US equity market finished session higher on Monday, 13 January 2020, as investors risk sentiments underpinned on optimism over the signing of a phase-one trade deal between the U. S. and China on Wednesday in Washington. Also contributing to the equities' run-up was de-escalation in U. S.-Iran tensions in the Middle East and reports The United States is planning to lift its designation of China as a currency manipulator. At closing bell, the Dow Jones Industrial Average rose 83.28 points, or 0.3%, to end at 28,907, while the S&P 500 index advanced 22.78 points, or 0.7%, to 3,288.13, while the Nasdaq Composite Index gained 95.07 points, or 1%, to 9,273.93

Markets have rebounded with no further escalation in the Middle East tensions and the focus shifting to the Phase 1 trade deal. The U. S. President Donald Trump and Chinese officials are set to sign the long-awaited phase one trade deal between the two countries on Wednesday, 15 January 2020, in Washington to ease the 18-month trade war.

The Trump administration has invited at least 200 people to the White House for the ceremony. The China's commerce ministry said that Vice Premier Liu He, who leads the Chinese negotiation team in the trade talks, is set to visit Washington from today. The deal will involve some tariff relief, increased Chinese purchases of U. S. agricultural goods and changes to intellectual property and technology rules. The agreement will also include clauses that seek to prevent China from devaluing the yuan to "unfairly compete against U. S. exporters.

Further, adding to the positive mood was reports that the U. S. plans to withdraw its largely symbolic designation of China as a currency manipulator ahead of Wednesday's planned signing of a partial trade pact that aims to ease the tariff battle between the world's two-largest trading partners.

Investors also are waiting for the corporate results that start in earnest this week with large U. S. banks, including Citigroup Inc, JPMorgan Chase & Co and Wells Fargo & Co, due to report on Tuesday.

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

First Published: Tue, January 14 2020. 09:17 IST