US and Asian stocks are boosted up on hope of resolution in US-China trade tensions. Trump tweeted yesterday that the had “long and very good” conversation with Chinese President Xi Jinping, with “heavy emphasis on trade”. He added the “discussions are moving along nicely” and meeting is being scheduled at the G20 summit in Argentina.
Separately, Xi said on CCTW state television that “the two countries’ trade teams should strengthen contact and conduct consultations on issues of concern to both sides, and promote a plan that both can accept to reach a consensus on the China-U.S. trade issue.”
Chinese Premier Li Keqiang also said yesterday that “we do hope that China and the United States will meet each other halfway and work together in the spirit of mutual respect and equality.”
The response in Chinese Yuan was overwhelming. USD/CNH (offshore Yuan), hit as high as 6.9804 this week but it’s now back at 6.9269. And for now, hope is raised for China to defend 7.000 handle for the Yuan.
