Renewed Optimism on Trade between Beijing and Washington
The Asian market is seemingly better as it’s stock market inched a three-month high earlier today. This was after U.S President Donald Trump said that by next month, he hopes to sign a trade deal at a summit in Chile with President Xi Jinping of China. The Shenzhen composite climbed 1.53 percent to close at 1,657.38. The Shanghai composite rose 0.85 percent to 2,980.05 while the Hang Seng (Hong Kong) index jumped 0.76 percent as the market was closing. In South Korea, the Kospi was up 0.27 percent to 2,093.60, while Japan’s Nikkei gained 0.30 percent to close at 22,867.27. In Australia, the ASP 200/ S&P closed at 6,740.70, BHP Billiton jumped 1.12 percent, and Fortescue Metals rose by 2.15 percent. However, the Diwali celebration has led to the stock markets in India, Singapore, New Zealand, and Malaysia to remain closed.
Reports from the commerce ministry in China cited that both parties were ready to address the key issues affecting them. The minister also stated that poultry trade between the United States and China had resumed. It is not yet confirmed whether both parties will reinstate the high tariffs that were imposed on 1st September, or whether the planned increase of taxes scheduled for 15th December will still happen. There are concerns about whether the United States will agree on china’s demands. After London’s request for a Brexit deadline extension from the European Union was accepted, the British pound continued to lose value since no new departure dates had been set. However, Russia reaffirmed its commitment to the oil cuts. As a result, global oil prices have remained stable.
After a statement from the United States Trade Representative’s office noting that they have made progress with China towards a phase one trade deal, the U.S. stock market prices rose on Friday last week. It has since made the dollar trim some early gain ahead of the Federal Reserve meeting. The meeting is scheduled for later this week. Investors expect a 25 bps rate cut after the meeting. The Tech-giant NASDAQ gained 0.7 percent while the Dow Jones Industrial Average rose by 0.6 percent to make an impressive run in the last three months. Due to the news from scmp.com regarding the United States and China trade talks and their influence on Brexit, most European markets closed on a higher note. German DAX edged up 0.2 percent, and the FTSE 100 (U.K.) index advanced 0.1 percent, the CAC 40 (France) slid 0.7 percent while the Pan Europe Stoxx 600 inched 0.2 percent.
Dil Bole Oberoi
