Stock markets came to a halt on Thursday as investors were left in the dark over the US-China trade talks.
The first part of the week saw an upward push for stocks globally, but Thursday was more doom and gloom as investors awaited news on the ongoing talks.
Reports suggest that the US president will put stringent tariffs on China as a way to ensure it upholds its end of any agreement. In addition, it is also suggested that China could have up until 2025 from the US to meet the agreed terms in regards to commodities purchases like soy beans.
There is still a long way to go before agreements are finalized, an opinion that White House Economic Advisor Larry Kudlow shares. “We are not quite there yet, but we hope this week will bring us one step closer,” he said.
The US-China trade impasse is having an adverse effect on the market. However, an earnest agreement from both parties will provide an essential encouragement for investors, and thus have a positive impact on stocks.