The Wall Street stock market opened higher and goes for new records after the agreement between China and the US to reduce tariffs


The NYSE opened with gains this Thursday, with the optimism of the reduction of tensions and tariffs of the commercial war.

Industrial index Dow jones began negotiations with a rise of 0.57% to exceed 27,600 points, while the selective S&P 500 marks an increase of 0.44% and the technological Nasdaq recorded an advance of 0.62 percent.

As reported by the Chinese government, Washington and Beijing agreed on a plan to gradually raise tariffs that apply to each other as their trade negotiations progress. Thus, it would not be expected to sign a treaty so that economic actors begin to benefit from the reduction of tensions.

The week had begun with strong gains for Wall Street, which set historical records in its three indicators. However, the days of Tuesday and Wednesday passed almost unchanged, given the versions of a possible delay of the pact between the powers. "Press reports showed that the signing of a partial agreement with China can be postponed until December, as China apparently wants the United States to waive certain tariffs," said Monica Moehring of the Allendale brokerage firm.

This Thursday, the Tokyo stock exchange had the same uncertainty and ended with a slight increase, before the announcement of the Chinese Ministry of Commerce, that yes He came to promote the closure of Southeast Asian markets and gave a positive start to European parks.

On October 26, the Chinese Government confirmed the progress of the negotiations for a partial trade agreement and assured that technical consultations on part of the text had already been completed. For his part, US President Donald Trump described the pact as a "first phase" in a process that can be developed in up to three stages, and parked his plans to raise tariffs on imports from the Asian giant.

So, China promised to increase its purchases of US agricultural products until reaching between 40,000 and 50,000 million dollars, a figure that, according to Trump, is between “2.5 and 3 times higher” than what Beijing “had bought so far at its highest point”, when it touched the 17,000 million of dollars.

Neither government has published details of the agreement so far, but Trump said that It includes some measures related to the devaluation of the Chinese currency and intellectual property issues, although it does not deal with the forced transfer of technology in China, an issue that will be discussed "in the second phase".

The agreement It also does not resolve the issue of export vetoes that affect the Chinese telephony giant Huawei, something that is being negotiated in a parallel process.

The International Monetary Fund (IMF) has warned of the global effects of the trade dispute between the two economic giants, and has lowered growth forecasts for both the US and China for this year and next.

(With information from EFE)


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