- Dow Jones Industrial Average (DJIA) futures turned positive on Tuesday, erasing overnight losses.
- Contrary to yesterday’s bombshell threat, Chinese firms continued to purchase US agriculture products as normal.
- China appears to have walked back its threat to halt US soybean purchases and hold up its end of the phase one trade deal, for now.
The U.S.-China trade war continued to dominate investor sentiment on Tuesday. This time, for the better. Dow futures are pushing higher, having erased losses from the overnight session.
The strong spike higher came as China appeared to pivot on a key issue of the ‘phase one’ deal.
Contrary to yesterday’s bombshell threat to halt soybean purchases, China is still buying, per a report from China’s Global Times – the English speaking newspaper associated with the Chinese Communist Party. GT reports:
Chinese firms continue to purchase US soybeans in line with market rules, unaffected by external factors.
Zhang Xiaoping, the Chinese director at the US Soybean Export Council said Chinese companies bought newly-harvested soybeans on Monday.
Dow futures erase overnight losses
As of 4.11 am ET, Dow futures popped 23 points (0.09%) higher, having recouped a large overnight loss.
This story is developing and will be updated shortly.
This article was edited by Samburaj Das.