US President Donald Trump and Chinese President Xi Jinping reportedly agreed to temporarily halt the imposition of new tariffs.Credit:AP
While the agreement between the two parties doesn’t negate the tariffs currently imposed, it does add more positive sentiment to the local sharemarket which has sold-off heavily in the past two months.
“The commitment to not impose new tariffs and negotiating is pretty positive,” Dr Oliver said. “It was always going to be impossible to solve in one dinner but this is a move in the right direction.
“From here, seasonality becomes more positive and it’s quite probable the combination of the local sharemarket being very oversold and the fact the Fed is looking a bit more dovish … that provides a boost.”
Morphic Asset Management head of macro and risk Geoff Wood said the meeting will give global markets a boost through December.
“I think it can set up a Christmas rally and set up the foundations for a positive December at least,” he said.
“It will be positive for the Aussie stock market. The real action will be in and around Chinese focused stocks and agricultural commodities. You’ll have a relief in the Chinese market, emerging market and stocks in general will rally.”
Mr Wood said the meeting had only put the more serious contentions on hold however.
“The issues around intellectual property theft are still the meat of the issue here and yet to be ironed out so this is a 90-day pause for now while they can hopefully find some positive ground,” he said.
JPMorgan Asset Management global market strategist Kerry Craig said the market would also receive