Headway on Trade
Stocks opened higher today on news that the U.S. and China have reached a “conceptual agreement” on intellectual property theft, according to Treasury Secretary Steven Mnuchin. The issue has been one of the most contentious topics in trade negotiations between the world’s two top economies. Talks are officially set to resume with China early next month.
The DJIA was up 0.35%, the NASDAQ 0.15%, and the S&P 500 rose 0.21% on average volume.
Global Stimulus Trend
On Friday, the People’s Bank of China moved to reduce RRR, or the required reserve ratio. The announcement sent stocks higher around the globe. The PBoC has hinted at further stimulus to counter the effects of U.S. tariffs. Now, other major international economies are expected to provide economic stimulus, including the Fed.
The European Central Bank is expected to deliver a rate cut on Thursday, and may resume the bond buying program it ended last year. In addition, the Fed is set to meet next week, and recent economic indicators suggests that it too will cut its key lending rate.