Investors wish be watching for developments on the U.S.-China trade front, with a new round of negotiations set to be held in Beijing later this week.
“The genuineness is that olive branches, rather than rose stalks, are the best that anyone (anchored to reality) may be looking for,” weighted Mizuho Bank in a morning note.
It pointed to “restraints” overhanging these talks.
“First, as of late last week, President Trump had broadcast that he would not be meeting with President Xi before the deadline (1st Mar) on the US-China trade truce expires,” the note indicated.
“However, Trump has also categorically stated that there will be no US-China trade deal till he and President Xi would rather met. Therefore that is as good a guaranteeing that there will be no deal before the US-China truce expires.” That, the note put, not only “contradicts” Trump’s earlier tweets enthusing about a deal in the works, but also “begs the question” of whether that hoped higher tariffs on Chinese imports.
The Wall Street Journal reported last Friday that the two countries keep not yet put together a draft on the matters they agree or disagree. The report comes as both Washington and Beijing are attempting to go-slow a deal on trade before a key early March deadline, following which additional tariffs will be slapped on Chinese connotations to the U.S.
It also follows U.S. President Donald Trump saying on Thursday he will not meet with Chinese President Xi Jinping previously that deadline. White House economic advisor Larry Kudlow also said there is a “pretty sizable detach to go” before China and the U.S. reach a deal.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.631 after dig highs below 96.8 in the previous week.
The Japanese yen traded at 109.78 against the dollar after weakening to lows overhead 110 last week. The Australian dollar changed hands at $0.7097, following a tumble last week from devastates above $0.721 in the previous trading week.
— CNBC’s Fred Imbert contributed to this report.