On Thursday, China’s Commerce Ministry offered a confirmation that negotiations between US and China trade teams were progressing well as both sides try to finalize the interim trade agreement which could be signed between the two leaders soon. Senior members of the trade teams from both sides are due to hold their next telephonic discussion on Friday.

Expectations were high that the “Phase 1” trade deal would be finalized and signed at the APEC summit on November 16-17, bringing some much-needed relief to global financial markets which have been reeling under the spillover effect from trade tensions between the US and China for over a year. However, violent protests have erupted in Chile, forcing the host to cancel the summit as it turns its attention to maintain law and order instead.

It is possible that alternate locations for signing the interim trade agreement could be discussed on Friday. Locations under consideration where the presidents of US and China could meet to sign the “Phase 1” trade deal include Alaska, Hawaii and Macau. However, markets remain skeptical of how an alternate venue could be fixed in such a short time, raising concerns that the trade deal could be delayed again.