Beijing still not close to meeting demands of US-China trade deal – SCMP
A headline from the South China Morning Post (SCMP), published Tuesday’s early Asian session, suggests challenges to the global risk-on sentiment. The news relies on China’s imports of the US goods under the trade agreement between Washington and the dragon land to suggest further hardships for the market’s mood.
Only one-third purchase?
The news mentions that China has so far, through August, purchased nearly 33% of the previously agreed US goods. The latest customs data, as per the update, suggests a 25% hike in imports from America. “The agreement dictates that China’s purchases should be US$200 billion higher than 2017’s levels, and on those terms, China is still miles away,” mentions the SCMP piece.
Reasons cited include the Trump administration’s anti-China moves, comprising sanctions on the cotton imports from Xinjiang.
Other than the risk to the US-China trade deal, the piece also portrays the risks to US President Donald Trump ahead of the American elections while citing failures to keep promises of Chinese demand.
Market sentiment stays positive…
As the news can be considered as a continuous noise, S&P 500 Futures paid a little heed to the risk-challenging update. While doing so, the risk gauge prints 0.25% gains to 3,353 by the time of the press.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
