MARKET RECAP

US stocks were up by 2% and international stocks advanced by 1.40%, bonds were mostly flat. The US and China signed the phase-one trade deal. China will spend $200 billion to help close the trade imbalance, China will avoid currency manipulation and will do more to minimize theft of American technology. The agreement does not address the Chinese state-backed hacking of US companies and government institutions, it does not address state subsidies of Chinese companies. The US says those issues will be addressed in subsequent agreements.

The US will maintain tariffs on the majority of imports from China until further reforms are agreed to. Ultimately, “this deal will work if China wants it to work,” according to US Trade Representative Robert Lighthizer.

In the meantime, the deal lowers trade tensions and hopefully will lead to further successful negotiations between the two countries.

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