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Wall Street Seen Opening On Cautious Note

wallstreet oct03 10oct19 lt

Lower futures amid some uncertainty about the high-level trade talks between the U.S. and China making any meaningful progress may set up a cautious start for U.S. stocks Thursday morning.

Data on consumer price inflation for the month of September and initial jobless claims for the week ended October 5 are also likely to make a notable impact on price movements on Wall Street on Thursday.

The market will be reacting to the developments on the trade front. According to a report in the South China Morning Post, the deputy-level trade talks did not progress any significantly. The high-level talks are set to commence today and will last just a day as the Chinese delegation will leave the U.S. a day earlier.

However, the White House has reportedly said that Chinese Vice Premier Liu He is still scheduled to leave only on Friday evening.

Liu He is scheduled to meet with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin later in the day. If reports that came out on Wednesday are any indication, the two countries may at least find an interim solution to their trade dispute.

It is likely that the Trump Administration will implement a previously agreed upon currency deal with China ahead of schedule and suspend tariff hikes that are to take effect next week.

Meanwhile, a report in New York Times on Wednesday said President Donald Trump had approved issuing licenses to some U.S. companies to conduct business with Chinese telecom giant Huawei Technologies.

Asian stocks turned in a mixed performance on Thursday as investors reacted cautiously to conflicting reports on the progress in the ongoing U.S.-China trade talks.

European markets were mostly lower amid cautious moves by investors ahead of high-level U.S.-China trade talks.

In commodities, crude oil prices were up by about 0.5%, while gold and silver prices were flat.

On Wednesday, the major averages ended on a firm note despite pulling back off their highs towards the end of the session. The Dow climbed 181.97 points or 0.7 percent to 26,346.01, the Nasdaq surged up 79.96 points or 1 percent to 7,903.74 and the S&P 500 jumped 26.34 points or 0.9 percent to 2,919.40.

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