Trump-Xi summit spurs global risk rally

It is not a deal, but there is hope.

Trump and Xi gave investors what they wanted at the G20 meeting in Osaka this Saturday: hope. The two leaders agreed to resume the trade talks that have halted in May. The US decided to hold off on the new round of tariffs on some $300 billion additional Chinese goods and even scale back restrictions on Huawei – the US companies could again do business with the Chinese tech giant. A deal is not sealed just yet, but the two countries showed mutual willpower to end the deadlock and move on with the talks.

Asian stocks rallied at the open. Shanghais Composite gained past 2% before easing into the lunch break. Technology and communication stocks jumped up to 4.01% and 2.74% respectively in the morning session. Shenzhen stocks added 2.93%.

Hong Kong was closed on the 22nd anniversary of its return to China. Protesters are back on the streets, unsatisfied with the delay, and not the complete withdrawal, of the extradition bill. The HK unrest may have curbed the upside potential by the mid-day in China.

Nikkei (+1.95) and Topix (+1.78%) soared, as Japanese yen eased 0.39% against the US dollar.

The US equity futures jump-started on pleasant news as well. The Dow (+0.80%) and NASDAQ Composite (+1.33%) hint at a strong positive open in New York.

Read the full article:

Opening calls

FTSE to open 54 points higher at 7479

DAX to open 126 points higher at 12525

Ipek Ozkardeskaya is a senior analyst at MBAex with a solid experience in the financial industry. She has strong technical background in economics and quantitative finance. Previously, she worked as a senior market analyst in London Capital Group, FX strategist in Swissquote Bank and as a client sales executive at HSBC

Read More Here...

Bookmark the permalink.