Brian R. Smith | AFP |
Traders work on the floor during the opening of the Dow Industrial Average on the New York Stock Exchange on Sept. 28, 2018 in New York.
Shares last week rose on the backdrop of growing optimism that the United States and China will be able to reach a permanent trade deal. US Trade Delegation headed by Finance Minister Stephen Mnuchin and US Trade Representative Robert Lighthouse last week in China to negotiate with Chinese officials. Mnuchin declared talks: "So far, so good."
Negotiations between the two countries should continue this week in Washington. Both countries have to come up with an agreement by early March. Otherwise, additional US tariffs for Chinese goods may enter into force. President Donald Trump recently said he was ready to postpone this term.
"Although it is likely that Trump will prolong this term, in order to avoid breaking the main ongoing negotiations, this can not be perceived," said Christopher Granville, Managing Director of Global Political Studies at TS Lombard. "The second round of talks in Beijing at the end of last week did not bring any breakthrough, but equally – and perhaps more importantly – there is no disruption."
"Thus, the risks of trade war remain obsolete,"
Walmart's shares increased by more than 2 percent after the company reported higher profits than expected. The retailer also reported that e-commerce sales grew by 43% in the previous quarter