Donald Trump said over the weekend that the meeting with Xi Jinping at the G20 gathering of world leaders had been ‘excellent’. Photograph: Kevin Lamarque/Reuters

Stock markets around the globe hopes for a peace deal in the US-China trade war

Aminy Andawi
Politics & Economic
International
Jul 03, 2019
1866
As the US-China trade war deal rises, the stock markets around the world have rallied sharply. Both of the country’s leader, Donald Trump and Xi Jinping, has agreed to resume the trade negotiations after the G20 gathering in Japan last weekend. The weekend meeting Trump had with Xi Jinping went “well” as Trump said that US’s relationship with China was “back on track”.

After the long trade war between the US and China which has slowdown the global economic status over recent months, both Trump and Xi Jinping promised that there would be no extra charge on Chinese imports which has become the main concern among the investors. China also agreed to pull back the decision to impose tariffs and will purchase more US products. Before the deal was made, Trump charged import tariffs on $200bn on Chinese goods while China put higher taxes worth $60bn on US imports.

As the deal have made by the two countries, the Dow Jones industrial average increased almost 200 points before closing up 117 points in an afternoon trading in New York. According to Mark Haefele, the global chief investment officer at the Swiss investment bank UBS, the deal to stop the trade war between the US and China would be prolonged as the war would cause damage to both of the country’s capital city.

Source: https://www.theguardian.com/business/2019/jul/01/global-markets-rally-as-hopes-of-us-china-trade-deal-rise

Economic , International