[ad_1]
President Donald Trump met on Friday with Chinese Vice Premier Liu He. Liu delivered a letter to Trump in which it was written that Chinese President Xi Jinping hoped that the two countries could redouble their efforts to reach a trade agreement.
Trump's meeting with Liu on Friday comes after an American delegation met Xi last week. Sources told CNBC that Trump and Xi are also discussing a summit in Mar-a-Lago at the end of March. The sources also said China pledged to buy $ 1.2 trillion worth of US products.
"This is not only constructive for the market, but also for the global economy," said Quincy Krosby, chief market strategist at Prudential Financial. An agreement "would help stabilize the Chinese economy, which would obviously help the world economy".
"This has a wider impact than US-China bilateral relations," Krosby said.
Optimism has increased over the chances of both countries reaching an agreement to end their long trade war, but some experts say the hardest is yet to come.
"It is obvious that both parties are encouraged to conclude an agreement," said James Athey, investment director at Aberdeen Standard Investments, told CNBC's "Squawk Box Europe" on Friday. "The problem is that you are now addressing the most difficult part of the negotiation, namely the problem of intellectual property."
The United States is simultaneously trying to solve its trade problems with Europe. According to a Bloomberg News report, the EU is gearing up to target heavy machinery manufactured by US companies such as Caterpillar if the US imposes tariff cuts on European-made cars. Caterpillar shares plunged 0.1% Friday.
The Trump administration threatens to spoil tariffs of up to 25% on European automobiles and auto parts.
"Markets could find that as soon as they come out of the frying pan with regard to China, they could find themselves again in the fire when it comes to Europe," said Bruce McCain. , chief investment strategist at Key Private Bank. "For this reason, this market that has grown very strongly and very fast in a world that has not solved all its problems could lead to some disappointment."
"It's not like we need to get discouraged and collect tons of money, but I think optimism in the market is probably exaggerating at this point," McCain said. .
Intel's shares rose more than 2% on Friday after Morgan Stanley increased the weight of the overweight shares, noting that Intel could have a boost now that Bob Swan is the full-time CEO.
Kraft Heinz shares fell 27.46% after the consumer products company disclosed a SEC subpoena following an investigation into its accounting practices. The company also announced a write-down of $ 15.4 billion.
[ad_2]
Source link