Trump offers another hope for a trade deal with China

• President Trump announced that the deal with China may be signed soon.
• The market may demonstrate positive reaction to the news.

On Saturday, December 21, the US President Donald Trump said that the United States and China were close to signing a so-called Phase One trade pact.

Speaking at Turning Point USA event in Florida, he said:

“We just achieved a breakthrough on the trade deal and we will be signing it very shortly.” 

Trump also announced on Twitter that he had a good talk with his Chinese counterpart President Xi. Apart from American agricultural products, they discussed North Korea and Hong Kong issues and pushed the deal to the formal signing procedure.

Notably, the  Phase One deal announced earlier this month is supposed to be a part of an attempt to put an end to a protracted trade war between the world’s two superpowers.

Under the deal, China would increase its purchases of American farm products, while Trump administration would reduce some tariffs.

Earlier this month, the Treasury Secretary, Steven Mnuchin mentioned that the deal was close to the final stage. 

The news may inspire risk-on rally on the markets on Monday morning.