US-China trade truce to boost markets; wild swings not over

President Donald Trump meets with China's President Xi Jinping during their bilateral meeting at the G20 Summit, Saturday, Dec. 1, 2018 in Buenos Aires, Argentina. Photo: AP Photo/Pablo Martinez Monsivais
President Donald Trump meets with China's President Xi Jinping during their bilateral meeting at the G20 Summit, Saturday, Dec. 1, 2018 in Buenos Aires, Argentina.

December 02, 2018 07:51 PM

The truce in the trade dispute between the U.S. and China should boost financial markets, at least likely through year's end, experts say.

But the stock market's wild gyrations of recent months likely will persist as the two countries strain to reach a permanent accord.

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The U.S. was set to raise tariffs on $200 billion in Chinese goods Jan. 1. President Donald Trump agreed Saturday in a meeting with Chinese Leader Xi Jinping at the G-20 summit to hold off for 90 days while the two sides try to settle their differences.

RELATED: US, China reach 90-day ceasefire in their trade dispute

That looming deadline, as well as Trump's threat to impose tariffs on an additional $267 billion of goods from China, possibly including iPhones and laptops, had contributed to sharp declines in stocks since early October.

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The Associated Press

(Copyright 2018 by The Associated Press. All Rights Reserved.)

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