Chinese and Hong Kong stocks soar to a strong close, while Chinese Yuan’s rebound also accelerates on more positive news on US-China trade war. The Chinese foreign ministry said today that the telephone conversation between Chinese President Xi Jinping and Trump was quite positive. And the ministry added two presidents believe they should enhance trade relations. Chinese media also said Trump supported “frequent, direct communications between the two presidents. And there will be joint effort to prepare for the Xi-Trump summit as sideline of G20 in Argentina on Nov 30 to Dec 1. On the other hand, it’s reported that Trump has asked key cabinet secretaries to draw up a potential agreement to sign during the meeting, as ceasfire in escalating trade war. Multiple agencies are believed to be involved in drafting the plan.
Hong Kong HSI closed up 1070.35 pts, or 4.21% at 26486.35. It now looks like this week’s low at 24540.63 is a medium term bottom. And, there should be more upside in near term, at least to correct the medium term down trend from 33484.07.
USD/CNH (off shore Yuan)’s fall also extends through 6.8 handle today. It’s also likely that 6.9804 is a medium term top. And break of 55 day EMA should at least send USD/CNH to test 6.7817 support.
