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US markets end higher ahead of US-China trade talks

10 Oct 2019 Evaluate

The US markets ended higher on Wednesday as traders hoped for some kind of deal to come from US-China trade talks beginning on Thursday, even if it is a limited pact. Private report said that China is prepared to accept a partial trade deal as long as no more tariffs are imposed by President Donald Trump. The report added that Beijing would offer non-core concessions like purchases of agricultural products in return, but not budge on major sticking points between the two nations. Besides, traders largely shrugged off the minutes of the Federal Reserve's September monetary policy meeting, which revealed a few participants expressed concerns that the markets expect more interest rate cuts than are appropriate. The minutes said those participants felt it might become necessary for the Fed to seek a better alignment of market expectations regarding the path of rates with policymakers' own expectations.

On the economic front, a report released by the Commerce Department showed a modest increase in US wholesale inventories in the month of August. The Commerce Department said wholesale inventories edged up by 0.2 percent in August, matching the uptick in July. Street had expected inventories to increase by 0.4 percent. The report said inventories of durable goods rose by 0.3 percent, while inventories of non-durable goods crept up by 0.1 percent. Meanwhile, the Commerce Department said wholesale sales came in virtually unchanged in August after rising by 0.2 percent in July. Wholesale sales were unchanged as a 0.3 percent increase in sales of durable goods was offset by a 0.3 percent drop in sales of non-durable goods. The report also said the inventories/sales ratio for merchant wholesalers came in at 1.36 in August, unchanged from the previous month.

Dow Jones Industrial Average surged 181.97 points or 0.70 percent to 26346.01, Nasdaq rose 79.96 points or 1.02 percent to 7903.74 and S&P 500 was up by 26.34 points or 0.91 percent to 2919.40.

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