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· The dollar edged higher on Wednesday on news that a “phase one” U.S.-China trade deal may not be completed this year, raising the prospect of another hike in tariffs and spurring safe-haven demand.

The dollar index .DXY, which measures the dollar against six major currencies, was up 0.1% at 97.949. The index rose as high as 98.038 earlier.

Increased trade tensions between Washington and Beijing have generally been supportive of the dollar as investors view the United States to be in better shape than other economies to weather a trade war.

· A divided Federal Reserve that decided to hit pause in its easing cycle following a rate cut in October signaled in minutes of last month’s meeting it was in no hurry to reassess the path of interest rates.

“Most participants judged that the stance of policy, after a 25 basis point reduction at this meeting, would be well calibrated to support the outlook of moderate growth, a strong labor market and inflation near the committee’s symmetric 2% objective,” the Fed said in the minutes.

As U.S. Federal Reserve officials hone their monetary policy playbook in preparation for the next economic downturn, it appears they will eschew more controversial approaches tried by other global central banks, including one that President Donald Trump has called on the Fed to try.

“The committee intends to keep rates on hold for the time being. After three consecutive rate reductions, the mid-cycle adjustment is over,” said Bob Miller, Head of Americas Fundamental Fixed Income at BlackRock Inc. “Beyond that...new information contained in these minutes was limited.”

· The House passed a pro-Hong Kong rights bill on Wednesday, putting President Donald Trump in a bind as he tries not to roil high-stakes trade talks with China.

The chamber approved a measure that aims to protect human rights in Hong Kong by a 417-1 margin amid efforts to crack down on months of anti-government protests. The House passed a second bill to bar the export of certain munitions to Hong Kong police by the same margin.

The Senate unanimously approved both pieces of legislation, so they head to Trump’s desk after House passage. The White House has not yet signaled where the president stands on the bills, but he could face a dilemma.

Congress’ move to pass the bills comes at a tricky time for Trump, who hopes to have a China trade victory to promote on the 2020 campaign trail. Major U.S. stock indexes fell Wednesday after a Reuters report that the world’s two largest economies may not finish a “phase one” trade deal this year.

· Completion of a “phase one” U.S.-China trade deal could slide into next year, trade experts and people close to the White House said, as Beijing presses for more extensive tariff rollbacks, and the Trump administration counters with heightened demands of its own.

Officials from Beijing had suggested that Chinese President Xi Jinping and Trump might sign a deal in early December. Some experts said the next date to watch is Dec. 15, when tariffs on some $156 billion in Chinese goods are set to take effect, including holiday gift items like electronics and Christmas decorations.

· Strategists say there’s still a chance for a phase one trade deal between the U.S. and China, even as the stock market sold off on skepticism the two nations could come together.after a Reuters report that the world’s two largest economies may not finish a “phase one” trade deal this year.

“The tariffs on Dec. 15 only get stopped as part of a phase one deal, or if they’re close to a deal,” said Tom Block, Washington strategist at Fundstrat. “I don’t think it’s any better than 50-50 [odds] ... This changes every day, but clearly there is a bigger risk today than there was two weeks ago.”

Doubts about a trade agreement have been rising, particularly since the U.S. Senate unanimously voted Tuesday to support the Hong Kong protesters. China, in response, said the U.S. was interfering. So far, President Donald Trump has not weighed in on the Senate bill.

The backdrop of the House impeachment hearings into Trump’s dealings with Ukraine has also generated cautiousness, but so far it is not impacting markets, strategists said. Some strategists said the concern is that the impeachment could consume Trump, distracting him from China and other topics, and making China feel it has a stronger hand.

“I don’t think the impeachment has anything to do with trade. I’m much more worried about Hong Kong and the persecution of the Muslims. If they have a Tienanmen Square-type situation where kids get killed and you see bloody students, that’s going to be far harder for them to come to an agreement on trade,” said Block. “The Chinese are very smart and very sophisticated. They’re not going to be thrown off track by the impeachment brouhaha.”

· Oil prices surged more than 2% on Wednesday after a better-than-expected U.S. crude inventories report and as Russia said it would continue its cooperation with OPEC to keep the global oil market balanced.

Brent crude LCOc1 futures settled at $62.40 a barrel, gaining $1.49, or 2.5%, and West Texas Intermediate crude CLc1 settled at $57.11 a barrel, up $1.90, or 3.4%.

Reference: CNBC, Reuters