China’s Finance Ministry issues statement on phase one trade deal with the US

Following the conclusion of the much-awaited US-China phase one trade deal on Wednesday, China’s Finance Ministry released an official statement on the said trade agreement, highlighting the key details.

 “Agrees to buy at least $200 bln in additional US goods and services over 2 years.

Agrees to buy additional $32 bln in US agricultural products over 2 years.

Agrees to buy additional $52.4 bln in US energy products over 2 years.

Agrees to buy additional $77.7 bln in US manufactured goods over 2 years.

Agrees to buy additional $37.9 bln in US services over 2 years.

China, US acknowledge that purchases will be made based on commercial considerations, market prices.

China, US acknowledge that market conditions, particularly for agricultural goods, may dictate timing of purchases in any given year.”

The market mood remains cautiously optimistic, as the above statement does little to better it. The Chinese text released is in line with the monetary values and time-frame mentioned in the US version.

USD/JPY keeps its range trade below 110.00 while the Aussie trades better bid just ahead of the 0.69 handle.

Among the related markets, S&P 500 futures and Treasury yields report small gains while gold prices hold the recent gains above $1550.

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