The Trade War Could Be Over between the United States and the United Kingdom
A trade deal is likely to be announced between the U.S. and the U.K. later today at a White House press conference.
Quick overview
- U.S. and U.K. stock market indices rose slightly following the announcement of an impending trade deal.
- President Trump is set to hold a press conference detailing the trade deal, which could potentially end the ongoing trade war.
- The Nasdaq, S&P 500, and Dow Jones all experienced gains on Wednesday, indicating positive market sentiment.
- While the U.S. and China continue to navigate their trade disputes, recent developments suggest a possible easing of tensions.
The stock market indices climbed slightly on Wednesday after the governments of the U.S. and the U.K announced that they are about to sign a trade deal.
The Dow Jones, Nasdaq, and S&P 500 indices all climbed slightly in response to trade deal rumblings from President Donald Trump and the United Kingdom. Trump announced on Wednesday that there would be a Thursday press conference to detail the deal. If an agreeable deal is struck, it could mean the end of the trade war that has been waged between the two nations since Trump took office.
That could be excellent for the stock market, and we are already seeing positive repercussions from this upcoming deal, with the Nasdaq Composite gaining 0.27% by the end of trading on Wednesday, and S&P 500 adding 0.43%, and the Dow Jones increasing by 0.70%.
Stock Market Expected to Rise
We anticipate that the stock market will continue to move upward through Thursday trading, and it will likely enjoy a considerable bump after the scheduled 10 a.m. press conference from the White House concerning its trade deal with the U.K.
Of course, the ongoing trade wars that the United States is having with multiple countries is most significant on the Chinese side. As long as that trade dispute still wages, the stock market will have trouble reaching its full potential. China currently imposes a 125% tariff on many U.S. goods, and the United States has imposed a 145% tariff on many Chinese goods.
The two countries are starting to play nicer with one another, with talks of a potential trade deal in the works. China recently exempted a number of U.S goods from its high tariffs, including microchips, aircraft engines, and some pharmaceuticals. This could be the first cautious step in the right direction.
Of course, the two countries are strong trade partners, but the United States has traditionally been at the mercy of Chinese tariffs and trade regulations. Now that the tables have turned under President Trump, a fierce trade war has broken out that both sides seem hesitant to back down from.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals