After a summit between Donald Trump and Xi Jinping in Chile this month was cancelled, investors feared for the prospect of the US and China reaching a trade agreement soon. However, the Chinese Foreign Ministry announced that the leaders of the world’s two largest economies are still in touch. According to preliminary sources, Trump is trying to plan a meeting in Iowa.
The date for the new meeting is still unknown. However, there is a new round of tariffs on Chinese goods coming to the United States that is supposed to come into effect on December 15. To use the tariffs of leverage, it is likely that both sides would want to meet before that deadline.
As a result of the announcement that the US and China are still working hard to set up a meeting to sign the phase-one agreement, stock markets in Asia rallied to three-month highs. The MSCI registered a 1.08% gain. Even in Europe, stocks were on the rise since an end to the trade conflict will generally be welcomed by all markets.
The only stock market that did not rally is the one in Japan because the country is celebrating a holiday.
