There has been a rally in the market recently due to various reports regarding the US-China trade war, tariff plans from the US government as well as various other reasons. However, we also saw that the markets were steady due to the fact that trade talks between the US and China were being restarted. However, we had reports overnight which revealed that the trade talks between the US and China might have been stalled. This caused a panic in the market and the Dow futures slipped in wild overnight trading according to a report from CNBC.
Dow futures indicated a negative open of more than 50 points as seen on 5:40 a.m. ET which means that the markets will start in red this morning. Jeff Kilburg, CEO at KKM Financial, said in an emailed statement that “This is the emotional roller coaster that we have to strap in for while these negotiations get hashed out,”
The initial report about the trade talks getting stalled came from South China Morning Post where it was reported that the U.S. and China made no progress in deputy-level trade talks this week. The report further added that “higher-level talks with China’s Vice Premier Liu He would now be only one day, with the China delegation planning to leave Washington on Thursday instead of Friday as scheduled. The issue of forced technology transfers, which China refused to put on the table, was the reason talks were at a standstill”.
However, the reports were rejected by the White House which revealed that “We are not aware of a change in the Vice Premier’s travel plans at this time,”. But the rally of stocks in futures was recovered somewhat when the White House said to CNBC that they were not aware of “change in Vice Premier’s travel plans at this time”.