Donald Trump: "We're not adding tariffs on China". (Image via CNN)

Global Markets Jump After Trump and Xi Agrees to Resume Trade Talks

Kinanty Nadia Putri
Market & Investment
Stocks & Bonds
Jul 01, 2019
1989
Following the commitment made by Trump and Xi during the G-20 summit to restart trade talks between the two countries, stocks rallied and bonds have retreated in Asia markets on Monday (7/1), CNN Business reports.

According to the report, South Korea’s KOSPI (KOSPI) rose 0.6% and Tokyo’s Nikkei (N225) jumped close to about 1.7%, while China’s Shanghai Composite (SHCOMP) index opened 1.5% higher.

After Trump said he would set a new tariff on the Chinese goods and lift some restrictions on tech company Huawei, the US stock futures also climbed.

The world’s second largest stock exchange Nasdaq (COMP), which includes key tech companies, rose by as much as 1.5% on Monday. While the Dow (INDU) was up more than 200 points.

On Saturday (6/29), Trump also announced that the US will now allow American companies to do business with Huawei which mostly includes the selling of equipment to the Chinese company, as long as the transactions won’t threaten the US national security. The US government has been accusing China used the technology company as a tool to undermine national security and foreign policy interests, however, the announcement marked the end of the ban on using Huawei telecom gear.

In spite of the announcement, it’s still unclear whether the temporary agreement will sustain the initial rally and resolve the fundamental conflicts over the trade issues which have set much damage since the talks broke down in May.

Source: https://edition.cnn.com/2019/06/30/business/global-stocks-huawei/index.html

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