China and U.S. agreed not to engage in a trade war - ANZ

Analysts at ANZ noted that talks between China and the US aimed at averting a trade war between the world’s two largest economies concluded positively. 

Key Quotes:

"A joint statement released by the White House noted China has agreed to meaningful increases in US agricultural and energy imports. China’s Vice Premier Liu He stated both countries agreed not to engage in a trade war and will stop imposing new tariffs on one another."

"However, key details, including the size of the reduction in China’s trade surplus, were lacking. The US is seeking a $200bn reduction in its $335bn annual trade deficit by 2020 (a figure some analysts believe is unachievable)."

"Prior to the joint statement, US officials claimed the two nations agreed to a reduction of this size, but Chinese officials disputed it, causing a bit of confusion in markets."

"While a number of details are yet to be worked out, China has dropped an enquiry into US dumping of sorghum at artificially low prices and the US has put its $150bn tariff threat on hold. Overall, markets should view this positively at the open this week, but will remain attentive to further developments."