Dow Jones futures launched a triple-digit rally in early trading on Wednesday as Treasury Secretary Steven Mnuchin said the China trade deal is 90 percent complete.
Speaking to CNBC, Mnuchin confirmed that Trump and Xi Jinping were inching closer to a resolution with their G20 meeting just days away. After back-to-back losses on the stock market, the Dow looks set to open higher at the bell.
“We were about 90% of the way there (with a deal) and I think there’s a path to complete this” – Treasury Secretary Steven Mnuchin.
Dow sparks triple-digit rally
Dow Jones Industrial Average (DJIA) futures leapt 122 points higher (0.46 percent) on Wednesday after a two-day bruising on the stock market. At 6.22 am, the Dow hovered at 26,684 just short of its all time high.
US-China trade deal: stock market catalyst?
As warning signs flash across the stock market, traders have pinned their hopes on a trade deal resolution. As Brian Kelly explained this week:
“If we get some movement, and it would have to be significant, at the G20 towards some kind of truce on this trade war, then you could actually see the market hit new highs.”
It seems Kelly may get what he wished for. While a trade deal agreement at Saturday’s G20 meeting is unlikely, Mnuchin is optimistic that Trump and Xi will make progress in the deadlocked talks. He sees the two super-powers inking a deal by the end of the year.
“I’m hopeful that we can move forward with a plan … President Trump and President Xi have a very close working relationship.