NEW YORK (Reuters) -U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer said on Sunday they reached a deal with China to cut the U.S. trade deficit, describing “substantial progress” in high-stakes talks with Chinese officials but offering no details as two days of negotiations concluded in Geneva.
ERIC KUBY, CHIEF INVESTMENT OFFICER, NORTH STAR INVESTMENT MANAGEMENT CORP., CHICAGO:
“This is a step in the right direction, showing that both sides are interested in coming to a constructive conclusion and develop a better trade relationship. The details are quite sketchy, but I think the direction sounds to be more cooperative rather than combative, and I think that we have to view that as a positive.
“There were a variety of possible outcomes of this weekend’s meetings, ranging from both sides walking out and pointing the finger at the other side to announcing that the extra tariffs have been taken off the table. What we got here was something more in the middle, but more towards the positive side. So I think this is a step in the right direction. It is not likely to trigger a dramatic market rally, but it’s certainly also not going to create any selling pressure.”
GENNADIY GOLDBERG, HEAD OF US RATES STRATEGY, TD SECURITIES, NEW YORK:
“Markets may be encouraged by some agreement on a deal, but it will remain contingent on further details being released. Recent price action suggests some optimism around a trade deal. If that turns out to be the case, pricing will have been justified. The risk is if the deal is less substantial than expected. Then the market might come away disappointed.”
JAMIE COX MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND VIRGINIA:
“The administration downplayed the talks heading into the weekend, so the substantial progress language will send markets zooming on a Monday. The one caveat to consider, however, is that the President could throw cold water on the talks if he thinks China is getting off easy.”
DAVID WAGNER, HEAD OF EQUITIES AT APTUS CAPITAL ADVISORS LLC IN FAIRHOPE, ALABAMA:
“There’s been a lot of optimism starting to be priced into the market already, but positive sentiment around the issue should continue to fuel a market recovery.”
(By Reuters Staff)
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