Phase one of US-China trade deal to repeal certain tariffs

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"It seems the market has now fully priced (in) the phase 1 trade agreement, so we are going to need further news if we are going to push through the important (technical) resistance that is just ahead", said Michael McCarthy, chief market strategist at CMC Markets.

Trump tweeted that Beijing "agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more".

In return, the USA government has promised to reduce some taxes on Chinese imports.

U.S. Trade Representative Robert Lighthizer speaks during an event to sign an update to the North American Free Trade Agreement, at the national palace in Mexico City, Tuesday, Dec. 10.

The process of putting tariffs in place kicked off in March past year, with Trump stating at the time that an investigation by Lighthizer had concluded China was using foreign ownership restrictions to require technology transfers from USA companies to Chinese organisations, as well as conducting espionage to acquire intellectual property and confidential business information.

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Speaking at a joint press conference with Slovenian Deputy Prime Minister and Foreign Minister Miro Cerar, Wang said China has, as always, been opposed to settling economic and trade disputes by imposing tariffs as there is no victor in a trade war. China also said it would buy more grain from USA farmers.

As China is deepening its reform and opening up, its market will inevitably expand, which offers opportunities to the United States, as well as to Europe and the rest of the world, Wang said.

He said while the Americans are happy, "we did not cheer" the new agreement. He suggested that China might have to buy more soybeans than it needs to meet the terms of the agreement. As part of that deal, the Trump administration also scrapped a 15 percent import tariff intended for Beijing.

A stronger US economy is bullish for oil prices and crude has moved higher this week, courtesy of a better than expected reading from Manufacturing PMI.

The Friday agreement averted additional tariffs on Chinese goods totalling $160 billion that the United States was set to impose over the weekend, but investors remained cautious as they awaited precise details of how the trade deal would work.

Trump then further increased existing tariffs on $250 billion worth of Chinese imports from 25% to 30% after the Chinese finance ministry enforced additional tariffs of 10% and 5%, respectively, on $75 billion worth of United States goods in two batches that were to start on September 1 and December 15. "If the hard-liners are making the decisions we're going to get one outcome, if the reformers are making the decisions - which is what we hope - then we're going to get another outcome".

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