U.S. and China wave white flags, hit pause button on trade war

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Still, Investors are divided over whether Trump's trade deal is fully priced into the market, or whether shares of Apple, its suppliers, like Qorvo and Skyworks Solutions, and other USA technology and trade-sensitive stocks have room to rise.

The United States and China on Friday announced a "Phase One" deal that would prevent an immediate escalation of the trade war between the two largest global economies.

U.S. stocks hit a fresh record on hopes there will be a continued softening of trade tensions between the world's two largest economies.

Chinese officials offered no specific details on the amount of USA agricultural goods Beijing had agreed to buy, a key sticking point in recent deal negotiations to end the 17-month trade war between the world's two largest economies.

After several rounds of tariffs on Chinese and US made products in their respective markets, China and the USA have finally come very close to a mini trade deal.

China also indicated it could reinstitute tariffs suspended at the beginning of 2019, including a 25 percent levy on US-made vehicles and a 5 percent tariff on auto parts.

Beijing has agreed to buy $32 billion in additional agricultural goods over the next two years, US officials said, from a baseline of $24 billion purchased in 2017, before the trade war started.

China bought $24 billion in US farm products in 2017, according to US Department of Agriculture figures.

A positive tone on trade, a dovish Federal Reserve and strong domestic economic data have fueled a recent Wall Street rally, with the benchmark S&P 500 up about 26% so far this year and on track for its best annual performance in six years.

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Both are among the 31 Democrats who represent districts President Trump won in 2016. "But working people closed it". The Canadian government has said it is waiting to ratify the agreement at the same time as the United States.

"We have agreed to a very large Phase One Deal with China", Trump said on Twitter. They want it, and so do we!'

The S&P index recorded 71 new 52-week highs and one new low, while the Nasdaq recorded 89 new highs and 34 new lows.

The announcement came two days before $160 billion in new USA levies on Chinese products were set to take effect.

Trump had also threatened to impose 15 percent levies on items worth an additional $160 billion on Sunday, which, if implemented as planned, would have seen almost all imports from China taxed.

Chinese negotiators have pushed for a rollback of existing tariffs, but it was unclear how much and under what conditions the US had agreed to do so.

The Trump administration has been seeking a way to enforce any significant trade agreement with China, reflecting its contention that Beijing has violated past promises. The tariffs scheduled to take place Sunday would have increased costs for Silicon Valley companies like Apple, which makes its iPhones in China, as well as for toy makers who rely heavily on production in Asia. Chinese officials said they would like the discretion to buy based on market conditions.

Before today, Trump's advisers have sent conflicting signals and stressed that he hadn't made up his mind on the next steps. Earlier this month in London, the president seemed nonchalant about resolving the matter, despite the pain for American farmers.

Three Democratic senators - Minority Leader Charles Schumer of New York, Ron Wyden of OR and Sherrod Brown of OH - sent a letter to the White House on Thursday, urging Trump to "stand firm" in the negotiations with China.

In a Friday morning tweet, Trump blasted the Journal report - which noted that the Chinese government has not commented on the progress of the negotiations and on whether a deal has indeed been struck.

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