The hope at the end of the customs dispute spurred the stock markets: U.S. President Donald Trump wants to create the trade dispute with China after a media report this month from the world.
At the Meeting of the G20 countries at the end of November Trump wool to complete a trade agreement with the President of the world’s second largest economy, Xi Jinping, reported the news Agency Bloomberg on Friday. He had already instructed government staff and experts from his staff, with the elaboration of Details.
The trigger for this step in a phone conversation with Xi was on Thursday. Trump himself had referred to the conversation as “long and very good” and on Twitter positively to the course of the talks on a trade agreement expressed.
According to the United States, China sent a clear Signal of relaxation. A phone call between China’s President Xi Jinping and Trump on Thursday had been “extremely positive,” said Chinese foreign Ministry spokesman Lu Kang. Both presidents had, therefore, agreed to resolve the conflict through “extensive consultation” and strengthen the economic exchanges between the two countries.
The head of state and government of the G20 group of leading industrial and emerging countries meet on June 30. November and 1. December in the Argentine capital of Buenos Aires to your annual summit.
Stock investors in a buying mood
On the stock exchange, the information has been received positively. Investors were in Asia, with shares. The Japanese index, the Nikkei castle 2.6 percent firmer at 22.243 points. That was the biggest one-day gain since March. In Japan, the conservation of the stocks of companies that are heavily involved in China shot.
The Chinese stock exchanges in Shanghai, Shenzhen and Hong Kong rose about three percent. Also the Chinese currency, the Yuan, which had been in the past few weeks, under pressure, was a stronger demand.
Also the German leading index, the Dax, gained 1.4 percent to 11,624 Wacker counter. Among the biggest winners in the Dax car values, which benefited from the newly acquired optimism of the investors and the sales figures in the United States. For Volkswagen, Continental, Daimler, and BMW, it went up.
Wall Street eases
Already on Wall Street, US President, Donald Trump had made for relief, as he announced on the short-messaging service Twitter, the negotiations with China on the customs conflict were “good in the river”.
“It makes sense that Trump is now on de-escalation,” said chief analyst Chisato Haganuma from the brokerage house Mitsubishi UFJ Morgan Stanley. The consequences of the customs dispute be incalculable for the US economy.
New punitive tariffs
After Washington had begun the dispute, coated both sides with a new round of mutual penalty duties. Washington extra duties imposed on Chinese Goods to the value of $ 250 billion, about half of all imports from the people’s Republic. China has, among other things, duties on imports from the United States, especially in the agricultural sector, to the military.
In addition to the trade dispute Beijing sees currently with a number of other sites in the economy. The industrial production has been growing for five months in a row, slower. The fight against debt and financial risk increases the cost of loans for entrepreneurs. The growth in the retail sector is weaker. Car sales fell in September for the third month in a row, and could go back this year for the first time in almost three decades.
The leadership in Beijing has provided tax breaks and other assistance for companies in view to the economic slowdown. The second largest economy in the world grew in the past three months and 6.5 per cent slower than expected. So weak, China’s economic growth was last early 2009, after the outbreak of the global financial crisis.
ul/hb (AP, rtr)