US stock index futures fell on Thursday after Bloomberg said China needed more discussions before signing the so-called first trade deal offered by US President Donald Trump on Friday.
Today at around 7 am, the Dow Jones Industrial Average futures index is down about 87 points, and the Dow briefly fell more than 100 points. The S&P 500 and Nasdaq futures were also lower at the opening.
Futures were marginally higher earlier in the session before the Bloomberg report. The vice premier said he could lead a delegation once the month ends to agree on the details of the “first phase” before President Xi Jinping agrees to the report. The report added that China wants Trump to also cancel the tariff hike in December as well as this week’s planned rise.
Last Friday, President Trump announced that the first phase of the agreement with China had been agreed, although officials on both sides said more work was needed. The partial agreement – covering agriculture, currency and some aspects of intellectual property protection – is the first step forward in ending the 15-month-old trade war.
However, the agreement does not contain many details, and Trump warned that it could take up to five weeks to get a written agreement. Indeed, analysts say it looks more like a temporary truce than a real trade deal.
The world’s two largest economies have imposed billions of dollars in tariffs on each other’s goods since the beginning of 2018, and financial markets, businesses and consumer sentiment have been hit since then.