In the early hours of Thursday (January 16) Beijing time, china-us trade ushered in a historic moment. Us stocks pared gains and spot gold edged higher to $1, 558 an ounce after the two sides formally signed the first phase of a trade deal. In the latest news from the trump impeachment trial, the US house of representatives has voted to formally send articles of impeachment against President Trump to the senate, which will begin its impeachment trial next Tuesday. Tonight, Beijing time, investors will face key U.S. retail sales data, which is expected to spark market volatility.
China and the United States signed the first phase of the trade agreement
On the morning of January 15, local time, the signing ceremony of the first phase of china-us economic and trade agreement was held in the east room of the White House. Liu He, a member of the political bureau of the communist party of China central committee, vice-premier of the state council and Chinese leader of the china-u.s. comprehensive economic dialogue signed the agreement and delivered a speech with U.S. President Donald Trump.
Addressing the signing ceremony of the first phase of the economic and trade agreement between China and the United States, Liu He said that the conclusion of the first phase of the economic and trade agreement will benefit China, the United States, and the whole world. Liu said that China will open wider to the outside world.
Liu stressed that after the signing of the agreement, China and the United States should make joint efforts to uphold the principle of equality and mutual respect, strictly abide by the agreement, accommodate each other’s core concerns and work hard to implement the first phase agreement.
US President Donald Trump said China and the US would begin negotiations soon and that “all tariffs will be lifted as soon as we complete the second phase of the trade agreement.”
The first phase of the economic and trade agreement includes nine chapters covering intellectual property rights, technology transfer, food and agricultural products, financial services, exchange rates, and transparency, expanded trade, bilateral assessments, and dispute settlement.
China’s three core concerns (eliminating all tariffs, making trade procurement figures realistic, and improving the balance of the text) and two principles (WTO rules and market principles) are embodied in the agreement, while the US’s core demands are positively addressed.
Under the agreement, China and the United States will strengthen and promote agricultural cooperation. According to the agreement, China will improve the measures for the administration of tariff quotas for wheat, corn, and rice in accordance with its WTO accession commitments. China will increase imports of us agricultural products such as dairy products, beef, soybeans, aquatic products, fruits, feed, and pet food, with an average import volume of us $40 billion in the next two years.
Under the first phase of the china-us economic and trade agreement, China and the US will provide fair, effective and non-discriminatory market access in banking, securities, insurance, and electronic payments. In the agreement, the two sides reached the consensus of equality and mutual benefit on the exchange rate issue and made it clear that both countries should treat the exchange rate issue equally, have equal rights and obligations, and respect each other’s monetary policy autonomy and other important principles.
In fact, even before the signing of the first phase of the trade agreement on January 15, the United States had shown goodwill by dropping its designation of China as a currency manipulator. It was seen as a gesture of reconciliation before the deal was signed.
In addition, according to the agreement, China will increase imports of agricultural products, energy products, manufactured goods, and service products from the US by no less than the US $200 billion over the next two years from 2017.
Financial markets reacted to news that China and the United States had signed a phase 1 trade deal.
Us stocks rose on Wednesday but gave up most of their gains after the US and China signed a much-anticipated first-phase trade deal. Most of the details are already known, and investors expect some hurdles in the second phase of the signing process.
The Nasdaq closed just above the flat line at 9,258.70. The s&p 500 closed up 0.2 percent at 3,289.29. The dow jones industrial average rose 90.55 points, or 0.3%, to 29,030.22. The dow rose as much as 187.92 points, or 0.7%, while the s&p 500 and Nasdaq rose as much as 0.5% each.
The dollar fell against the yen. The dollar fell about 0.15 percent against the yen to 109.78 after rising as high as 110.20 on Tuesday to its highest level since May last year.
Sumitomo Mitsui credit bank said that the us-china trade agreement signed, the dollar/yen appeared to sell the fact; The agreement is already priced in the market.
Gold prices also rose. Spot gold hit an intraday high of $1558.00 an ounce.
Suki Cooper, the analyst at standard chartered, said: “continued uncertainty over trade talks has been a positive factor driving investor interest in the gold market and the fact that the second phase of the deal is likely to be less than the market expects has helped gold prices in the short term.”
“Gold’s move higher is a combination of some ongoing uncertainty and the fact that the dollar is weakening and yields are weakening, which creates a fairly favorable backdrop for gold prices,” he added.
Analysts pointed out that after the signing of the first phase of a trade agreement between China and the United States, the key is to implement the content of the agreement. The bilateral assessment and dispute settlement section of the agreement sets out the “rules of the game” that impose penalties on any party that breaches the agreement.
Liu said that after the signing of the economic and trade agreement of the first stage, both sides should make joint efforts to implement the agreement and achieve tangible results.
‘the current uncertainty lies in the second phase of the agreement,’ Sumitomo Mitsui said. The implementation of the first phase agreement is also uncertain.
News from the trump impeachment trial
The US house of representatives on Wednesday voted to send articles of impeachment against US President Donald Trump to the senate. On the day of the vote, 228 votes in favor, 193 against. All Republicans voted against, one democrat voted against and the rest voted for.
Earlier Wednesday, House Speaker Nancy Pelosi (d., calif.) appointed seven house Democrats to lead the impeachment process, including intelligence committee chairman Robert Schiff and judiciary committee chairman Nancy Nadler.
Senate majority leader Mitch McConnell said Wednesday that the impeachment trial of Mr. Trump would begin next Tuesday. The Senate will take up articles of impeachment against the manager at noon on Thursday.
Mr. Trump is only the third President in US history to be impeached. On December 8, 2019, the US house of representatives passed two articles of impeachment against President Trump, namely “abuse of power” and “obstruction of congressional investigation”.
The house accused Mr. Trump of obstructing Congress and abusing his power to pressure Ukraine to announce an investigation into his Democratic rival Joe Biden.
Earlier, Pelosi repeatedly delayed plans to introduce articles of impeachment for President Donald Trump after failing to reach an agreement with the senate on the terms of his impeachment trial.
With the house of representatives formally sending articles of impeachment to the Senate, US media reported that the senate could begin its impeachment trial on February 16 at the earliest, and the trial could be concluded before trump’s state of the union address on February 4.
The chief justice of the US Supreme Court will be sworn in on Thursday to preside over the impeachment trial of President Donald Trump, AFP reported.
U.S. President Donald Trump expects the senate to initiate impeachment proceedings and is confident it will acquit him, White House press secretary Alison Grisham said in a statement on Wednesday.
The US Treasury secretary Steven mnuchin said the White House was not particularly concerned about impeachment.