Trump says phase-one U.S.-China deal will be signed “very shortly”
U.S. stocks are poised to open a shortened trading week slightly higher, buoyed by trade optimism. Over the weekend, President Donald Trump said the U.S. and China would sign their phase-one trade agreement very shortly.
Speaking at a Turning Point USA event in Florida, Trump said: “We just achieved a breakthrough on the trade deal and we will be signing it very shortly.”
China and the U.S. announced the agreement earlier this month as part of a move aimed at ending their prolonged trade conflict, which has slowed global growth and roiled markets.
At around 4:35 a.m. ET, the blue-chip Dow futures were up 25.5 points, or 0.09% to 28,507.5. The S&P 500 futures rose 2.87 points, or 0.09% to 3,228.62 while the tech-heavy Nasdaq 100 futures advanced 8.63 points, or 0.10% to 8,719.38.
China to cut more tariffs on imports
Meanwhile, Chinese authorities announced overnight that import duties on 859 goods would be lowered from Jan 1. According to the Chinese finance ministry, the goods will include pharmaceuticals, some tech components, paper products, frozen pork, and more.
The ministry said lower tariffs are expected to “increase imports of products facing a relative domestic shortage, or foreign specialty goods for everyday consumption.”
China has been slashing import duties since 2017, in a move aimed at opening it to freer global trade. However, the latest move doesn’t appear to be linked with China’s prolonged trade spat with the Trump administration.
The reduced tariffs will also benefit of many of China’s trading partners, including Singapore, Pakistan, Australia, New Zealand, and Peru.
Sarepta stock soars 10% after $1.15 billion licensing agreement with Roche
Shares of Sarepta Therapeutics (NASDAQ: SRPT) jumped in premarket trading Monday, after the company announced a $1.15 billion licensing agreement with Roche for Duchenne muscular dystrophy (DMD) SRP-9001, Sarepta’s investigational micro-dystrophin gene therapy.
The agreement gives Roche the exclusive commercial rights to SRP-9001 in territories outside the United States. Sarepta released a statement saying it will receive upfront $750 million in cash and $400 million in an equity investment from Roche.
It will also be eligible to receive $1.7 billion in regulatory and sales milestones; and royalties on net sales which it expects to be in the mid-teens. At press time, shares of Sarepta were up $13.83, or 10.96% to $140 apiece.
