Trade agreement of the US and China: to be or not to be?!?!

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Trade agreement of the US and China: to be or not to be?!?!

November 02, 2018 - 08:58
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Markets from Japan to India are growing after Bloomberg News issued information about willingness of President Donald Trump to reach trade agreement with China at Group of 20 summit, which will take place in Argentina later this month, Bloomberg writes today.

Photo © Gerd Altmann, CC0 1.0

Markets from Japan to India are growing after Bloomberg News issued information about willingness of President Donald Trump to reach trade agreement with China at Group of 20 summit, which will take place in Argentina later this month, Bloomberg writes today.

S&P 500 futures gained 0,6%. Hang Seng index grew by 3,6% and may show the largest gains since 2015. Chinese yuan is 0,2% up, while South Korean won gained 1,4% relative to dollar.

Administration of US President will be preparing draft conditions for the agreement, and this inspires investors and traders, as one of main risks for reducing global growth outlook is fading. In this situation experts expect further increase in US and Asian stocks. Such change in conflict situation shall provide special support to equities and currencies in Asia and emerging markets.

However, taking into account previous history of trade conflict, such optimist might be short-lived.