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Global Stocks and Yuan jump to the hopes of the US-China Trade Weapon



Global stocks jumped on Friday, with the hope that trade tensions between the United States and China will gradually increase following a telephone conversation between President Trump and his associate Xi Jinping.

Stocks across Europe have progressed in the opening up of trade, following a larger growth in Asia, with Stoxx Europe 600 by 1%. Meanwhile, Japanese Nikkei Stock Average rose 2.6%, China's Shenzhen A share index reached 3.4%, while Hong Kong's Hang Seng accounted for 4.2%.

In the United States, futures accounted for a 0.8% gain on S & P 500 and a 0.9% increase in Dow Jones Industrial Average.

Mr. Trump chirps what Mr. Xi called "long and very good conversation," helped start the first rally of the Asian rally on Friday. The markets continued to rise early in the afternoon, as investors hoped to reach a trade agreement by the end of the month.

After the Bloomberg report, market gains accelerated after Mr Trump urged US officials to plan with the Chinese governments the terms of the trade agreement at the G20 summit – where the two leaders are expected to meet – at the end of this month.

"While we are still cautious about the recent release of the recent tensions, in the medium term the continuation of the Washington-Beijing dialogue would be enough for investors," said Tai Hui, Asia's market leader J.P. Morgan Asset Management.

Taking the markets helped reverse the losses of October piles, which was partly due to geopolitical tensions.

Asian markets were particularly hit by this year's trade tensions. Chinese, Hong Kong and South Korean capital market benchmarks have been marketed as the recent 20% decline.

President Trump and Chinese President Xi Jinping in 2017 in Beijing.

President Trump and Chinese President Xi Jinping in 2017 in Beijing.

Photo:

Agence France-Presse / Getty Images

On the foreign exchange markets, the US dollar dropped to 6.9 on the first day on October 6, to 6.9 yuan on the offshore market and to 6.98 on Thursday. In recent days, the Chinese currency drifted close to $ 7, a level that was defended in the past by intervening in financial markets. The dollar is currently buying 6,883 yuan.

The WSJ Dollar Index, which keeps the dollar for $ 16, dropped by 0.2% on Friday.

Some Chinese analysts say Chinese news has also helped the Asian markets after Mr. Xi met Chinese business leaders this week. He offered to reduce their tax burden and financial aid to private companies, according to the official Xinhua News Agency.

In addition to commercial disputes, some market tensions have been easing in recent days after announcements of continuous earnings and hoped that the US economy would not be on the decline.

"The economic cycle is OK, and stock market securities have meant that valuation is very reasonable," said William Dinning, investment strategy and communications manager at Waverton Investment Management.

"I do not think there is any sign of recession in the United States – we may be slowing down," he added.

Investors are also in front of the October workpieces, which is expected to be Friday, as many expect the US Federal Reserve to tighten monetary policy faster if inflationary pressures accelerate.

According to a survey by Wall Street Journal economists, the Ministry of Labor reports that they provided 188,000 jobs this month, while unemployment was 3.7%.

Investors have been paying particular attention to the US technology sector after Apple closed on Thursday after the bell.

Geoff Yu, U.K. Head of Investment Office at UBS Wealth Management said that due to changes in the last month, investment in technology groups has grown steadily in recent months.

The 10-year US government securities yield rose to 3.172%, compared with 3.144% on Thursday. The yields are inversely related to the prices.

Write to him Mike Bird at Mike.Bird@wsj.com


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