MARKET ALERT: Stocks Rise After U.S. and China Put Trade War on Hold (NY Times)

Editor's Note

The New York Times reports on an agreement between China and the U.S. that pauses the recent in the trade war between the countries. Under the deal, the U.S. will postpone an increase in tariffs that were set to be imposed Jan. 1, and a March 1 deadline was set for the countries to reach a more extensive pact. The deal leaves in place American tariffs on $250 billion in Chinese goods and the retaliatory measures enacted by Beijing.

Stocks Rise After U.S. and China Put Trade War on Hold

Stocks rose on Wall Street, after President Trump and President Xi Jinping of China reached a truce in the two countries’ trade war. ...

The détente, forged over a dinner between the leaders of the world’s two largest economies, merely postpones a larger reckoning over trade. Under the deal, the United States will postpone an increase in tariffs that were set to be imposed Jan. 1, and it sets a March 1 deadline for the countries to reach a more extensive pact.

The deal leaves in place American tariffs on $250 billion in Chinese goods and the retaliatory measures enacted by Beijing. It is unclear whether the countries can resolve such thorny questions as the Chinese government’s support for sensitive industries and protections for American-created intellectual property.

But given the issues that remain unresolved between China and the United States, investor enthusiasm may be fleeting.