US President Donald Trump is going soft on China, for now. | Source: AP Photo/Alex Brandon, File
Dow Jones Industrial Average (DJIA) futures popped 75 points higher in early trading Thursday. Stock market optimism returned as President Trump gifted China a two-week stay of execution on looming trade war tariffs.
In a tweet last night, Trump said he would delay the 5% tariff increase on $250 billion worth of Chinese goods from October 1st to October 15th. The “gesture of goodwill” came at the request of Chinese Vice Premier Liu He and in respect for the 70th Anniversary of the People’s Republic of China.
….on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th.
— Donald J. Trump (@realDonaldTrump) September 11, 2019
Dow jumps 49 points on trade war easing
Dow Jones Industrial Average (DJIA) futures crept higher on Thursday morning, extending the stock market’s winning streak. At 7.16 am, Dow futures were 49 points up at 27,209.
Trade war thawing?
The Global Times – China’s English language newspaper under the People’s Daily – said the move signaled a “trade war thaw” that could pave the way for more productive negotiation.
“There are more signs of a trade war thaw between Beijing and Washington.