Dow Jones Industrial Average futures turned lower Thursday as investors looked to the two largest economies amid concerns over a protracted trade war.
Around 7:10 a.m. ET, Dow futures were down 7 points after trading higher earlier in the premarket session.
Chinese President Xi Jinping is expected to present President Donald Trump with the terms it expects the U.S. to meet before Beijing is willing to settle the contentious trade fight between the two nations, The Wall Street Journal reported Thursday, citing Chinese officials.
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The South China Morning Post, citing unnamed sources, reported overnight that officials from Washington and Beijing had tentatively agreed to resume talks aimed at resolving the dispute. The report could not be independently verified by CNBC.
Trump and XI are expected to meet at this week’s G-20 summit in Osaka, Japan.
China and the U.S. have been in a trade war for more than a year. The U.S. has imposed tariffs on more than $250 billion worth of Chinese goods. China has retaliated with tariffs on U.S. products. An agreement between Trump and Xi at the G-20 summit in Japan would avert the next round of tariffs on additional $300 billion worth of Chinese imports.
On Wednesday, Trump said a bilateral meeting with his Chinese counterpart could lead to a trade deal but warned he was prepared to impose tariffs on virtually all remaining Chinese imports if talks faltered once again.
Shares of Boeing also weighed on Dow futures, falling sharply after the Federal Aviation Administration said on Wednesday that it has found an issue with the 737 Max that the manufacturer must address before it lifts the national grounding order.
On the data front, a third reading of first-quarter GDP (gross domestic product), GDP prices, and the latest weekly jobless claims figures will be released at 8:30 a.m. ET. Pending home sales for May and Kansas City Fed survey data for June will follow slightly later in the session.
Source: cnbc.com | Original Link