US China deadline extension helps markets
The US and China may be nudging closer towards finding some middle ground in their nearly year-long trade dispute, a resolution that would give markets some breathing space going forward and potentially even reverse some parts of the global economic slowdown.
Share this:
The US and China may be nudging closer towards finding some middle ground in their nearly year-long trade dispute, a resolution that would give markets some breathing space going forward and potentially even reverse some parts of the global economic slowdown.
President Trump indicated yesterday that he might extend the 1 March deadline for the two sides to reach an agreement if it seems that enough progress has been made in their bilateral talks and thus avert the planned introduction of yet more trade tariffs on Chinese goods. Chinese stock markets cheered with a 2% increase to a multi-month high in early trade and European markets followed with a rally, particularly in Germany where a lot of car producers and industrials depend on exports to China. In London, Rolls Royce and luxury brand Burberry were high up among the gainers, as were metals and mining companies.
Congress border deal boosts US stocks
The US government narrowly avoided a shutdown scheduled for this week thanks to a face-saving deal between President Trump and the Congress which allows both sides to claim success. Instead of the $5.7 billion worth of funding to finance the building of a wall on the US border with Mexico Congress agreed to provide $1.375 billion for border security, offering a way out of the impasse that has been paralysing US government offices since December.
The decision brought palpable relief to US markets and continued to boost Asian and European stocks this morning. The dollar’s reaction was mixed as it firmed slightly against the yen but nudged into weaker territory against the euro and sterling.
Brexit uncertainty continues
The pound is left without clear direction as Britain seems no closer to any clarity over Brexit. Sterling is almost flat against the dollar and marginally stronger against the euro but the strengthening seems more temporary than a clear trend.
The Prime Minister is due to present her updated Brexit proposal to the Commons today with changes from the EU on the Northern Ireland backstop and in theory this is due to be followed by a Valentine’s Day debate on the update. But comments from Brussels and the opposition are not providing much hope for a resolution.
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
British Pound Short-term Outlook: GBP/USD Selloff Breaks June Uptrend 9 22 2026
Sterling has slipped below its 200-day moving average as downside momentum carries GBP/USD toward another major technical support zone.
British Pound Forecast: GBP/USD Heads for Biggest Weekly Drop Since May 9 17 2026
Sterling selling has intensified after the September range broke lower, with GBP/USD now confronting a major Fibonacci support zone.
British Pound Short-term Outlook: GBP/USD Bulls Confront Resistance at Three-Month Highs 8 20 2026
The Sterling rally remains firmly intact, but stretched momentum is raising the risk of a near-term inflection as the bulls test resistance.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.