U.S. Stock Market

U.S. Stocks Set To Open Higher As Traders Bet On Continuation Of The Upside Trend

U.S. – China Trade Deal Review Got Postponed

The review of the Phase 1 trade deal between the world’s biggest economies got postponed as the U.S. had reportedly decided to provide China with more time to increase purchases of U.S. goods.

Not surprisingly, the coronavirus pandemic put some pressure on the implementation of the first phase of the U.S. – China trade deal which remains a rare bright spot in the current relations between the two countries.

The delay of the review is a positive development for the markets since it shows that U.S. is not ready to put more pressure on China on the trade front.

Additional time will provide Beijing with a chance to boost purchases under the deal. As a result, the review of the Phase 1 deal will look more favorable and allow both parties to stay on course for the Phase 2 deal in case the political situation permits new negotiations.

S&P 500 futures are gaining some ground in premarket trading as traders believe that the trade deal between U.S. and China is not in danger for now.

More Pressure On Chinese Companies?

While the news on the trade deal front are favorable for China and the world economy, U.S. – China relations continue to trend down.

On Saturday, U.S. President Donald Trump stated that he may put pressure on more Chinese companies after he decided to ban TikTok unless it would sell its U.S. operations. China’s technology giant Alibaba is a possible target.

At this point, it looks like traders believe that U.S. will not act against other Chinese companies before the November elections so shares of Alibaba find themselves under limited pressure in premarket trading.

Berkshire Hathaway Buys Shares Of Barrick Gold

While gold and silver continue their rebound after the recent sell-off, gold and silver miners are set for a strong start of the week as Warren Buffet’s Berkshire Hathaway disclosed that it bought 20.9 million shares of Barrick Gold.

Miners’ shares have been under pressure during the recent sell-off but are set for increased trading activity after Berkshire’s move.

Berkshire’s position in a leading gold miner will increase investors’ confidence in the sector and attract new money into gold and silver miners.

For a look at all of today’s economic events, check out our economic calendar.