Trade Deal Rumors Boost U.S. Open - Forex News by FX Leaders
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Trade Deal Rumors Boost U.S. Open

Posted Wednesday, April 3, 2019 by
Shain Vernier • 1 min read

During the U.S. overnight, reports began to surface suggesting that a U.S./China trade deal may be close to finished. According to high-ranking officials at the U.S. Chamber of Commerce, talks are in the “endgame stage,” with “90%” of a deal already being done. U.S. indices have fed on the news following a positive Wall Street open.

It is important to remember that the timeline for ratification of any U.S./China trade deal remains unclear. Talks between China’s Vice Premier Liu He, U.S. Treasury Secretary Steven Mnuchin, and U.S. Trade Representative Robert Lighthizer kick off a bit later today in Washington D.C. While few specifics are expected from the meeting, it is being viewed as a tune-up for a Trump/Jinping summit later this month.

The Trade Deal Talk Is Good For NASDAQ Futures

At press time (10:30 AM EST), U.S. indices futures are extending the gains made during a bullish break shortly after yesterday’s electronic open. June E-mini NASDAQ futures are leading the charge, trading above March’s High (7544.75).

June E-mini NASDAQ Futures (NQ), Daily Chart
June E-mini NASDAQ Futures (NQ), Daily Chart

Overview: The past five sessions have been great ones for the U.S. indices. Values are trending north and fresh all-time highs appear destined for the DJIA, S&P 500 SPX, and NASDAQ. Although recent metrics suggest the American economy is slowing, bids continue to hit U.S. stocks en masse.

Ultimately, a U.S./China trade deal will be the primary catalyst for further gains in the U.S. indices. Be on the lookout for a Trump/Jinping summit to be announced by the weekend break. At this point, it looks like the U.S./China trade war of 2018/19 is finally coming to an end.  

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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