“China will Continue to Communicate with the US”
The eleventh round of Sino-US economic and trade negotiations ended, and Vice Premier Liu He delivered a speech. US stocks staged a “V” reversal.
CCTV News also pointed out that Liu He said in an interview with the Chinese media that China will rationally deal with Sino-US trade frictions.
According to the review of Yangguang International, in the future, China will continue to communicate with the US with the utmost sincerity and best efforts, and strive to narrow differences, expand consensus, and promote consultations. However, this consultation must respect each other’s core interests and major concerns and reflect the principle of equality and mutual benefit. Only in this way can the Sino-US economic and trade consultations survive the final stage of the marathon race and spend the “darkness before dawn”, and then explore a mode of coordinating and controlling differences and expanding consensus, and promote the construction based on coordination, cooperation and stability. Sino-US relations.
Earlier, after Trump posted a tweet, the US stock market hit an intraday high and closed near that level. Trump also pointed out that trade negotiations with China are “candid and constructive.” Trump said that the new tariff on Chinese goods worth 200 billion US dollars “may be canceled or may not be cancelled.”
U.S. Treasury Secretary Nuchin said that today’s China trade negotiations have ended and are “constructive.”
Jim Paulsen, chief investment strategist at Leuthold Group, said, “The problem is likely to be solved. If it is really resolved, you must believe that we will return to the high point soon. Because the situation around it is still very good: the bud of many recovery Interest rates remain low and earnings have improved.”
Although Trump’s tweet pushed up the stock market’s close, a presidential tweet earlier pushed the stock market to an intraday low. In the early morning tweet, Trump said that the United States “is absolutely not in a hurry” to reach a trade agreement with China. Earlier, he raised the tariff on Chinese goods worth 200 billion U.S. dollars from 10% to 25%. Apple’s iPhone’s revenue in China is growing, and the company is still down 1.4% on Friday, falling nearly 7% this week.
MV Financial investment strategist Arian Vojdani said, “We may see him trying to suppress it, but in the end people really don’t think we will see a fierce trade war… The Trump government is very concerned about the market, they don’t want to see the market pain.”
Despite the reversal of today’s trend, companies that want to reach a trade agreement are still under some pressure. Chip makers have been hit hard by fear of an escalation of trade wars. VanEck Vectors Semiconductor ETF fell nearly 6% last week, the worst week of the year.
On Friday, the taxi giant Uber started trading at the $42 price per share on the New York Stock Exchange, which was previously priced at $45 per share. The stock closed down nearly 8%.
Trump’s two tweets on Sunday night sparked market turmoil this week. Despite the rise on Friday, the S&P 500 still suffered the worst week of the year, down nearly 2.2%.
Some Wall Streeters believe that investors should be prepared to face this protracted trade war.
Zhang Zhiwei, chief economist at Deutsche Bank Asia, said in a report on Friday: “We still expect the two sides to eventually reach a trade agreement, but it is unlikely to be reached in the short term because the war is not enough for both sides. ”
"China will Continue to Communicate with the US" - /10
The eleventh round of Sino-US economic and trade negotiations ended, and Vice Premier Liu He delivered a speech. US stocks staged a "V" reversal.