US-China trade, currencies and oil in focus
US President Donald Trump said Tuesday he was open to postpone on March 2 the deadline for tariffs if Washington and Beijing could soon reach a trade agreement.
Trump mitigated his attitude to the trade dispute with China and said he is open to slipping the time limit, but "does not prefer to." He also said Beijing "very much will make a deal" and he has "a big team" in China trying to reach a decision.
When asked if he would meet Chinese President Xi Jinping at the end of March, the trumpet said, "Not at this point."
Trump's comments came as the US and China are trying to find a deal amidst an ongoing trade battle between the two economic powerhouses.
The March 2 deadline is crucial for the negotiations that the US Tariffs on Chinese goods will increase if an agreement is not hit before then. Treasury Secretary Steven Mnuchin, along with US Trade Representative Robert Lighthizer, is in Beijing this week for another round of negotiations with Chinese Vice President Liu He.
A morning note from strategists at DBS Group Research warned "not to count chickens before they close."
"The commute on whether a US-China trade agreement can be hit has swung with US President Donald Trump's comments on his / her meeting with Chinese President Xi Jinping to extend talks beyond the 1[ads1] p. in March, enlargement will only be possible if China accepts US pressure on enforcement mechanisms in areas that have forced technology transfer and intellectual property
"I expect what I have said all the time," said Andrew Collier, CEO of Orient Capital Research, CNBC's "Street Signs" Wednesday.
Collier said the two countries are likely to agree on more market access, increased buya look at goods, and what is called "snap back." This means that if there is no improvement in intellectual property and state aid, the tariffs will be raised mposed, he said.
"The Snapback will probably be over a six to 12 month period, and the question is … how long is that period and what kind of talk sets do they put in place?" Said Collier. "That's what they are fighting over now, I think."
