The US markets ended marginally lower on Monday on renewed uncertainty about a trade deal with China. President Donald Trump announced on Friday that the US and China have reached a very substantial phase one deal, although reports suggest China wants another round of talks before signing the agreement. China may send a delegation led by Vice Premier Liu He to finalize a written deal that could be signed at the Asia-Pacific Economic Cooperation summit next month in Chile. China wants Trump to also scrap a planned tariff hike in December in addition to the hike scheduled for this week.
Trump said the deal includes up to $40 to $50 billion in Chinese purchases of US agricultural products as well as Chinese concessions on intellectual property and financial services. In exchange for the concessions by China, the US agreed to hold off on an increase in tariffs originally scheduled for this week. Meanwhile, the choppy trading on markets came amid light volume due to the Columbus Day holiday. Besides, investors also were eyeing developments in negotiations over Britain’s exit from the European Union, after optimism that a deal could be reached rose Friday following productive negotiations between UK Prime Minister Boris Johnson and Irish Prime Minister Leo Varadkar on the difficult question of the customs border between Britain’s Northern Ireland and the Republic of Ireland.
Dow Jones Industrial Average dropped 29.23 points or 0.11 percent to 26787.36, Nasdaq declined 8.39 points or 0.10 percent to 8048.65 and S&P 500 was down by 4.12 points or 0.14 percent to 2966.15.
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