The US and China may be reaching breakthroughs in their ongoing trade negotiations. Reports have begun circulating that the two countries have been working on Memoranda of Understanding that will form the basis for a long-term trade deal. It is believed that among other concessions, China has proposed up to $30 billion dollars of additional spending on US agricultural goods such as soybeans and wheat. Sources have not yet stated whether any progress has been made on other key issues of concern, such as intellectual property theft.
An agreement on a trade deal could buoy investor confidence and heighten economic optimism for the coming year. If no deal is reached, the resulting uncertainty could lead to increased pessimism in global markets.
