Dow Jones futures increased Sunday, along with S & P 500 futures and Nasdaq futures that followed a tariff agreement…
Dow Jones futures increased Sunday, along with S & P 500 futures and Nasdaq futures that followed a tariff agreement at the Trump-Xi meeting. President Donald Trump and China President Xi Jinping agreed to stop new tariffs and avoid escalating the Chinese trade war. Trump-Xi meeting outcome sets higher Trump charges on Chinese goods, including any charges on iPhone Apple (AAPL) iPhone. A China trade war ceased to be good news for Apple stocks, Tesla (TSLA), Deere (DE) and US listed Chinese stocks as Alibaba ] BABA). Chipmakers, perhaps especially Qualcomm (QCOM) and NXP Semiconductors (NXPI), may also benefit.
The positive Trump-Xi meeting comes after little comments from the Fed Chairman Jerome Powell drove the best weekends for 2018 for the Dow Jones, S & P 500 Index and Nasdaq Composite. Fed Chairman Powell said Wednesday that interest rates are “just below” neutral.
Dow Jones futures jumped 1.7% at fair value. The S & P 500 futures raced 1.55% higher. Nasdaq 100 futures increased by 1.9%. Keep in mind that Dow futures and other overnight stays are not necessarily translated into actual trading on the next regular stock market period. Crude oil futures jumped. The Trump-Xi Trade Force can offer asset prices and forecasts for economic growth, while traders are looking forward to a likely production of OPEC and Russia at a key meeting this week.
On Monday, the New York Stock Exchange will hold a minute silence for former President George HW Buske. On Wednesday, NYSE and Nasdaq stock exchanges will close for Bush’s funeral. Bond markets will also be closed. Traditionally, US stock markets close to past presidents funerals.
U.S. will refrain from raising existing duties of $ 200 billion Chinese goods from 10% to 25% on January 1, as previously planned at 10%. The United States wants to talk about instantly starting with Chinese trade practices, as even Trump critics are important issues: theft of intellectual property rights, non-tariff barriers and cyber theft. After 90 days, if no progress is made on these fundamental issues, the US will raise these tariffs to 25%, said White House’s press secretary Sarah Huckabee Sanders in a statement after the meeting in Trump-Xi.
China also agreed to increase its purchases of agricultural and industrial goods to reduce its trade balance with the United States, she said. Beijing will immediately resume the purchase of US agricultural products after shutting off American soybeans in the context of the US-China trade war. It may be good news for farmers, agricultural and related companies as agricultural equipment giant Deere. Deere shares hit a 52-week low on October 29, when the S & P 500 index bottomed, but moved higher, recalling its 50-day and 200-day rows last week.
Apple shares were by far the biggest loser on Dow Jones in November, a tumbling of 18.4% and a seven month low. Apple warehouse lost its crown as the world’s most valuable company to the subsidiary Dow Tech Stock Microsoft (MSFT) on Friday. Most of the sales were due to Apple’s weak vacation guidance and a range of iPhone vendors that warn of weak demand. But Trump’s threat of introducing a 10% duty on iPhones imported from China did not help Apple stocks.
At the same time, Tesla China is now processing a 40% tariff on imported US vehicles. This puts Tesla at a disadvantage for locally manufactured vehicles and cars imported from other countries. The electric car manufacturer plans to build a factory in Shanghai, but China’s tariff exemption would be a much more immediate increase. The Tesla share is working on a 366.85 cup-with-handle purchase point, according to Marketsmith analysis. The Tesla share closed Friday at 350.48.
A trade war in China can also be good news for US listed Chinese stocks. Alibaba share rose 13% in November and repurchased its 50-day moving average. The Alibaba share, which works better than many other Chinese Internet, is still 24% below its top 14 June.
Xi also said he had deemed to approve a revived Qualcomm acquisition of NXP Semiconductors, the White House said in a statement. The canceled $ 44 billion Qualcomm-NXP Semiconductors Agreement was the highest-profile victim of China’s trade war.
It is unclear whether Qualcomm and NXP Semiconductors would try again. Keep in mind that if China-China trade continues to be angry, Chinese regulatory authorities could once again block a Qualcomm-NXP Semi-merger.
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