U.S. stock index futuresturned lower Monday morning after China said it needed to have further discussions before it would sign off on the so-called phase one trade deal U.S. PresidentDonald Trumptouted on Friday.
Futures were marginally higher earlier in the session before taking a nosedive followinga Bloomberg reportthat said China trade officials wanted more talks by the end of October to discuss details of the “phase one” trade deal
Around 6 am ET,Dowfutures indicated a drop of more than 115 points at the open. Futures on theS&PandNasdaqwere both slightly lower.
Market focus is largely attuned to global trade developments, amid the long-running US-China trade dispute.
On Friday, President Trump announced thatthe first phase of a dealwith China had been agreed, though officials on both sides said much more work needed to be done. The partial deal – which covers agriculture, currency and some aspects of intellectual property protections – represents the first step forward to end the trade war in 15 months.
However, the deal does not include many details and Trump has warned it could take up to five weeks to get a pact written. Indeed,analysts are sayingit appears to be more of a “temporary truce” than a real trade pact.
The world’s two largest economies have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.
There are no major economic data reports scheduled.
Meanwhile, US bond markets are closed Monday in observance of Columbus Day.
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