Dow gained 166 (close to session highs), advancers over decliners better than 3-2 & NAZ gave back 3. The MLP index was fractionally lower in the 256s & the REIT index dropped 1+ to 380. Junk bond funds fluctuated & Treasuries crawled higher. Oil was slightly lower in the 62s (while Brent briefly topped 70) & gold added 2 to 1298 (more on both below).
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2180338269244485)
The US & China moved closer to a trade deal during talks this week, but negotiators still need to hammer out some sticking points as they push for a final summit between Pres Trump & Chinese Pres Xi Jinping, an administration official said. Chinese delegation led by Vice Premier Liu He met with US officials Wed & today as the 2 sides try to strike an agreement to end a potentially devastating trade conflict. While the Trump administration has shown optimism about inking a trade overhaul long sought by the pres, negotiators still have some differences. The 2 sides are going line by line thru deal text Thurs, with a break for a meeting between Trump & Liu, the official said. They will continue to work through the deal on Fri. The world's 2 largest economies still disagree over whether the US will use tariffs as an enforcement tool. Trump has previously said his administration’s tariffs on $250B in Chinese goods could stay in place even after the sides strike a deal. China has pushed for the removal of duties as part of an agreement. The US & China had not set a date or place for a summit between Trump & Xi, but the 2 sides could work out the details later today. They still have not agreed to announce summit details on Thurs. The talks come as investors & businesses watch closely for developments that could ease tensions between the US & its largest trading partner. The escalating series of tariffs imposed by both China & the US has rattled financial markets & led to concerns about issues rippling throughout both economies. Trump, who won the White House partly on his pledges to crack down on what he called Chinese trade abuses, seeks a victory that he can promote during his 2020 re-election bid. “If it’s not a great deal, we’re not doing it,” he said. “But it’s going very well.” The 2 sides are eyeing a series of agreements on different subjects tied together by one enforcement tool, the administration official said. The US & China have not decided how much of the agreement to finish now & how much to leave for the potential meeting between Trump & Xi. The US would give China until 2025 to follow thru on commitments to purchase more goods from the US. But different products would be subject to separate timelines. Trump has long decried the trade deficit between the US & China and pushed for Beijing to buy more American goods. Negotiators have not set a time frame for addressing structural issues, such as stopped intellectual property theft or forced technology transfers.
US, China make progress on trade, but enforcement is still a big sticking point
Pres Trump said he would give Mexico a year to stem the flow of illegal drugs & migrants over the southern border, & if the country cannot, he said he would impose auto tariffs, & if that didn't work, would close the border. “You know I will do it. I don’t play games. ... so we’re doing it to stop people. We’re gonna give them a one year warning, and if the drugs don’t stop, or largely stop, we’re going to put tariffs on Mexico and products, in particular cars. The whole ballgame is cars....and if that doesn’t stop the drugs, we close the border,” Trump said. “If Mexico doesn’t apprehend these people coming” into the US from Central America, “we’re going to tax the cars. And if that doesn’t work, we’re going to close the border,” Trump said during a meeting of the White House Opportunity & Revitalization Council. “If, in a year from now, drugs continue to pour in, we’re going to put tariffs up.” The move represents a significant step back from Trump's recent threats to shut the border as early as this week. “If Mexico doesn’t immediately stop ALL illegal immigration coming into the United States through our Southern Border, I will be CLOSING the Border, or large sections of the Border, next week,” Trump tweeted on Mar 29. It was unclear exactly how Trump's new demands would be put into motion, or how long he might give tariffs to work before closing the border. But the yearlong delay came as good news to businesses & Rep lawmakers, both of whom feared earlier this week that the closure of some part of the US-Mexico border was imminent. “We welcome the President’s decision not to close the Mexican border,” said Neil Bradley, exec VP of the Chamber of Commerce. “Congress and the president should take this opportunity to enact border security and immigration reform. Congress should also ensure Customs and Border Protection officials receive the resources they need to reduce the excessive wait times affecting legitimate trade and travel across the border.”
Trump delays closing U.S.-Mexico border for at least a year
Brent crude oil tops $70 for first time since November as supply tightens
Gold futures finished trade slightly lower as financial markets awaited an update on reported progress in trade negotiations between the US & China and as an upbeat reading on jobless benefits claims fueled expectations for a recovery in monthly hiring in a report due tomorrow. Gold for Jun delivery fell $1 to $1294 an ounce, but had touched an intraday low at $1284. Speculation in recent days for a breakthrough in US-China trade talks, though with many unknowns still looming, has bolstered appetite for stocks & away from bullion, while the $'s strength helped to depress gold's value. Expectations for DC & Beijing to resolve differences have been cited as a driver of stock-market gains since the end of last year, which had clipped gold's advance. A report said that Pres Trump may announce plans for a summit with China's pres, Xi Jinping, when he meets the country's VP later today. At the same time, there are reportedly major hurdles to clear over US desires to maintain tariffs on Chinese goods, as a means to ensure Chinese adherence to the deal.
Traders can taste the trade deal with China & are smiling. However more work is needed & then the paperwork must be signed by both sides. The Dow is less than 500 away from a new record. To reach that level, a lot is depending on reaching a trade deal with China. Tomorrow the important jobs number for Mar will be reported.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
The US & China moved closer to a trade deal during talks this week, but negotiators still need to hammer out some sticking points as they push for a final summit between Pres Trump & Chinese Pres Xi Jinping, an administration official said. Chinese delegation led by Vice Premier Liu He met with US officials Wed & today as the 2 sides try to strike an agreement to end a potentially devastating trade conflict. While the Trump administration has shown optimism about inking a trade overhaul long sought by the pres, negotiators still have some differences. The 2 sides are going line by line thru deal text Thurs, with a break for a meeting between Trump & Liu, the official said. They will continue to work through the deal on Fri. The world's 2 largest economies still disagree over whether the US will use tariffs as an enforcement tool. Trump has previously said his administration’s tariffs on $250B in Chinese goods could stay in place even after the sides strike a deal. China has pushed for the removal of duties as part of an agreement. The US & China had not set a date or place for a summit between Trump & Xi, but the 2 sides could work out the details later today. They still have not agreed to announce summit details on Thurs. The talks come as investors & businesses watch closely for developments that could ease tensions between the US & its largest trading partner. The escalating series of tariffs imposed by both China & the US has rattled financial markets & led to concerns about issues rippling throughout both economies. Trump, who won the White House partly on his pledges to crack down on what he called Chinese trade abuses, seeks a victory that he can promote during his 2020 re-election bid. “If it’s not a great deal, we’re not doing it,” he said. “But it’s going very well.” The 2 sides are eyeing a series of agreements on different subjects tied together by one enforcement tool, the administration official said. The US & China have not decided how much of the agreement to finish now & how much to leave for the potential meeting between Trump & Xi. The US would give China until 2025 to follow thru on commitments to purchase more goods from the US. But different products would be subject to separate timelines. Trump has long decried the trade deficit between the US & China and pushed for Beijing to buy more American goods. Negotiators have not set a time frame for addressing structural issues, such as stopped intellectual property theft or forced technology transfers.
US, China make progress on trade, but enforcement is still a big sticking point
Pres Trump said he would give Mexico a year to stem the flow of illegal drugs & migrants over the southern border, & if the country cannot, he said he would impose auto tariffs, & if that didn't work, would close the border. “You know I will do it. I don’t play games. ... so we’re doing it to stop people. We’re gonna give them a one year warning, and if the drugs don’t stop, or largely stop, we’re going to put tariffs on Mexico and products, in particular cars. The whole ballgame is cars....and if that doesn’t stop the drugs, we close the border,” Trump said. “If Mexico doesn’t apprehend these people coming” into the US from Central America, “we’re going to tax the cars. And if that doesn’t work, we’re going to close the border,” Trump said during a meeting of the White House Opportunity & Revitalization Council. “If, in a year from now, drugs continue to pour in, we’re going to put tariffs up.” The move represents a significant step back from Trump's recent threats to shut the border as early as this week. “If Mexico doesn’t immediately stop ALL illegal immigration coming into the United States through our Southern Border, I will be CLOSING the Border, or large sections of the Border, next week,” Trump tweeted on Mar 29. It was unclear exactly how Trump's new demands would be put into motion, or how long he might give tariffs to work before closing the border. But the yearlong delay came as good news to businesses & Rep lawmakers, both of whom feared earlier this week that the closure of some part of the US-Mexico border was imminent. “We welcome the President’s decision not to close the Mexican border,” said Neil Bradley, exec VP of the Chamber of Commerce. “Congress and the president should take this opportunity to enact border security and immigration reform. Congress should also ensure Customs and Border Protection officials receive the resources they need to reduce the excessive wait times affecting legitimate trade and travel across the border.”
Trump delays closing U.S.-Mexico border for at least a year
Brent oil prices rose, topping $70 per
barrel for the first time in nearly 5 months, as expectations of
tight global supply outweighed pressure from rising US production &
less robust global demand indicators. Brent futures touched $70.03, its highest level since Nov 12, when it last traded
above $70. The intl benchmark for oil prices settled 9¢
higher at $69.40 a barrel. West Texas Intermediate (WTI) crude settled
36¢ lower at $62.10 a barrel. The contract dropped 12¢ in the previous session after briefly hitting $62.99, also the
highest since Nov. Global benchmark Brent has gained 30% this year, while WTI has gained 38%. Prices have been
underpinned by tightening global supplies & signs of demand picking
up. The Caixin/Markit services purchasing managers' index rose to 54.4,
the highest since Jan 2018 & up from Feb's 51.1, a 4th-month low, a private business survey of China's service sector
showed. Trade
talks between the US & China made “good headway” last
week in Beijing & the 2 sides aim to bridge differences during
further talks, White House economic adviser Larry Kudlow said yesterday. Crude oil is also supported by an agreement between
OPEC & allies such as Russia, a group known as OPEC+, to reduce oil
output by about 1.2M bpd this year. Today, OPEC member Libya was on the brink of open war between
the North African country's main political factions. General Khalifa
Haftar ordered his forces to march on Tripoli, the seat of the UN-recognized gov. Libya has played an outsize role
in balancing the oil market because ongoing conflict has contributed to
sharp swings in the nation's output. The involuntary disruptions have
helped OPEC tighten the market.
Brent crude oil tops $70 for first time since November as supply tightens
Gold futures finished trade slightly lower as financial markets awaited an update on reported progress in trade negotiations between the US & China and as an upbeat reading on jobless benefits claims fueled expectations for a recovery in monthly hiring in a report due tomorrow. Gold for Jun delivery fell $1 to $1294 an ounce, but had touched an intraday low at $1284. Speculation in recent days for a breakthrough in US-China trade talks, though with many unknowns still looming, has bolstered appetite for stocks & away from bullion, while the $'s strength helped to depress gold's value. Expectations for DC & Beijing to resolve differences have been cited as a driver of stock-market gains since the end of last year, which had clipped gold's advance. A report said that Pres Trump may announce plans for a summit with China's pres, Xi Jinping, when he meets the country's VP later today. At the same time, there are reportedly major hurdles to clear over US desires to maintain tariffs on Chinese goods, as a means to ensure Chinese adherence to the deal.
Gold ends slightly lower ahead of jobs report, U.S.-China trade update
Traders can taste the trade deal with China & are smiling. However more work is needed & then the paperwork must be signed by both sides. The Dow is less than 500 away from a new record. To reach that level, a lot is depending on reaching a trade deal with China. Tomorrow the important jobs number for Mar will be reported.
Dow Jones Industrials
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