The sentiment improved considerably in financial markets in October after US and China agreed on principle for a partial trade deal, which would be called “Phase One”. Although, the deal is not official yet. We have heard some contradictory comments recently, with senior US officials threatening to delay it till December, while yesterday we heard Donald Trump say that he might increase tariffs if the deal is not signed.

But, US commerce secretary Wilbur Ross made some comments a while ago, which sound optimistic. Below are his comments:

• US-China trade deal will be done ‘in all likelihood’
• There is a very high probability that a deal will be reached
• Chinese agricultural purchases and execution of those are an issue
• Huawei not an appropriate player in the US 5G space
• US will have deal with China or keep tariffs
• But there is still plenty of time for that
• There will be another trade call with China today
• We are much farther along with details of trade deal with China
• Trump has not yet indicated any change in 15 December tariffs