Trump and Jinping met at the G-20 Summit in Buenos Aires, putting global markets on pause as the two economic superpowers met to hopefully ameliorate their trade differences. As part of the agreement, both nations agreed to withhold imposing further tariffs on each other for 90 days while they work out a firm, ironclad deal.
The U.S. agreed to keep the current 10% tariffs on over $200 billion worth of Chinese goods while an agreement is negotiated, but will increase to 25% if no agreement is reached prior to the 90-day deadline.
“There are two major factors here: a new level of trade talks is under way, and the number of bearish market calls got significantly higher,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “That usually signals the end to an ongoing sell-off. I think this rally could go on through the end of the year.”
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