It appears that President Xi Jinping has managed to momentarily allay the market’s fears surrounding the status of the US-China trade deal.
Though the leader was keen to stress that Beijing is not afraid to ‘fight back’, he claimed that the country has been ‘working actively to try not to have a trade war’, stating that China ‘did not initiate this trade war’ and that it’s ‘not something we want’.
A convincing case could be made for this being completely meaningless. Yet given investors are devouring every morsel of trade deal news, it was enough to send the markets back into the green.
The DAX and CAC both added half a percent, while the Dow Jones is looking to re-cross 27800 this afternoon. The giddiest index was the FTSE, which shot past 7300 once again as it rose 1.1%; it was, however, the most effected on Thursday, so this sort of just takes it back to square one.
The tone could change dependent on the state of the flash manufacturing and services PMIs from across the West; ditto what Christine Lagarde says in her first major address as ECB chief. However, the focus is so firmly on trade matters at the moment that it might take another update to significantly shift the indices from their current positions.
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