Stocks slide ahead of trade deal signing
President Trump and China's chief negotiator, Liu He, are scheduled to sign a modest trade pact Wednesday
U.S. equity futures are trading slightly lower ahead of Wednesday's signing of the phase one trade deal between the U.S. and China.
The major futures indexes indicate a decline of 0.1 percent when Wall Street opens.
Conflicting reports raised concerns over the likely outcome of a trade deal to be signed by the U.S. and China.
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Wall Street had a mixed session Tuesday as investors parsed the latest indications on trade relations between the two largest economies.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 38460.92 | -42.77 | -0.11% |
| SP500 | S&P 500 | 5071.63 | +1.08 | +0.02% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15712.748618 | +16.11 | +0.10% |
Traders were spooked by a report that U.S. tariffs would remain in place on Chinese goods even after a preliminary deal is signed Wednesday.
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The Wall Street Journal reported that the Trump administration was preparing to further tighten controls on technology exports to Huawei Technologies.
In Asia, Japan's Nikkei lost 0.5 percent, the Hang Seng in Hong Kong dropped 0.4 percent and China's Shanghai Composite gave up 0.5 percent.
In Europe, London's FTSE added 0.1 percent, Germany's DAX slipped 0.2 percent and France's CAC was lower by 0.1 percent.
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President Trump and China's chief negotiator, Liu He, are scheduled to sign a modest trade pact Wednesday that calls for the U.S. to ease some sanctions on China. The U.S. dropped its designation of China as a currency manipulator ahead of the signing.
Beijing, meanwhile, will step up its purchases of U.S. farm products and other goods.
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While the deal is limited in its scope, investors hope it will prevent further escalation in the conflict that has slowed global growth, hurt American manufacturers and weighed on the Chinese economy.
The Associated Press contributed to this article.