ETF Winners as US-China Stay Committed to Phase 1 Trade Deal
Zacks Investment Research | Aug 27, 2020 04:53AM ET
The latest progress in U.S.-China trade talks has brought optimism in markets. Ending speculations and concerns over simmering tensions between the two large economies, trade officials have reaffirmed their commitment to the Phase 1 trade deal. Notably, the pledge was made between US Trade Representative Robert Lighthizer, US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He on a phone call, which was previously expected on Aug 15.
In this regard, US Trade Representative's office (USTR) said that, "both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement," per a Reuters article. It also mentioned that “the parties also discussed the significant increases in purchases of US products by China as well as future actions needed to implement the agreement." Discussions were also done on China’s actions to enhance the protection of U.S. intellectual property, regulate the forced transfer of American technology to China firms and make its financial services market accessible to U.S. firms, according to a Reuters article.
ETF Winners to Watch
US Agricultural/Livestock ETFs
The U.S. agricultural sector has seen the worst due to the Sino-US trade war. According to the US Census Bureau, $7.27 billion worth of agricultural goods have been exported to China in the first half of 2020, per a Reuters article. Although China has increased its purchases of agricultural goods, including soybeans, it is significantly lagging its commitment to buy $36.5 billion worth of U.S. agricultural goods under the Phase 1 of trade deal, according to a Reuters article.
The latest developments might be a breather for the sector. Thus, investors can keep an eye on ETFs like Invesco DB Agriculture ETF Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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