US-China trade deal may be a sell trigger

U.S. Trade Representative Robert Lighthizer (2ndR) sitss across from China's Vice Premier Lie He (L) during the opening of US-China Trade Talks in the Eisenhower Executive Office Building at the White House in Washington, U.S., January 30. - Reuters

GETTING a trade deal done between two superpowers, the United States and China, is tough enough but there is already a call to sell upon any accord being struck.

One would view this to be positive for stocks but “buy on rumour, sell on fact” is the thinking behind this sell call. Growing speculation that it could be some “watered down” or “cosmetic” deal (although President Donald Trump, in his State of Union address, had called for real, structural change to end unfair trade practices) further spurred this negative, sell sentiment.