Index figures of the US stock market saw a rise on Monday as international trade fluctuations took center stage. Around 5:50 a.m. eastern time, the Dow opened at 100 points, and the prospective numbers of the S&P and Nasdaq were thought to rise.
This came in light of Trump announcing that tariffs on Mexican imports are suspended indefinitely. He tweeted that the countries had reached consensus and that Mexico was working towards minimizing migration from Central America. The New York Times reported that as of Saturday, Mexico had agreed to take actions on direction of the US and so the tariffs were canceled.
At the same time, investors are monitoring trade relationships between US and China as a key meeting between the two is in the works. The US Treasury Secretary Steven Mnuchin said that Trump will move forward with his tariff plan to “re-balance” the relationship. He spoke to CNBC on the matter and said that the tariffs will be decided after the meeting of the leaders.
Data released on Monday morning showed that China’s gross trade surplus had increased to $41.65 billion in May, which was higher than estimates.
France’s Bruno Le Marie told CNBC that the US-China trade dispute could very well cause a worldwide economic meltdown.
Investors remain worried about the data showing that the US economy was able to add a mere 75, 000 jobs in May, which is the second time in the last four months that job growth was less than one hundred thousand. Economists surveyed by Dow Jones estimated this increase to be 180, 000, showing a slowdown.
