The United States and China have been in a trade war for a while now. Both countries can’t seem to come to a mutually beneficial trade deal and this is affecting the global stock market. This has affected the stock market because traders are not sure how the trade deal will play out and they are being careful about it. As the President of China, Xi Jinping and the President of the United States, Donald Trump is preparing for another meeting, the global stock market has remained steady.
Traders Avoid Bold Steps Ahead Of Meeting Between Trump And Jinping
Yesterday, the Asian stock markets slipped but the European shares increased a little with pan-European STOXX 600 recording a 0.08% gain. Across the globe, Germany’s DAX index recorded the highest gains as it was up by 0.36% within a 24 hour period.
During the G20 summit, Jinping will meet with Trump on the sidelines in a bid to resolve the year-long trade war between the United States and China. Hopefully, the resolution of the conflict will be beneficial to investors and will help them take a firm stance in the global stock market.
The central bank of China, on Thursday, announced that it is willing to support the global economy in any way possible. This was just after data was released stating that the factory activity in China has dropped consistently for two consecutive months.
The anticipation is also affecting the currency market. After losing for three consecutive days to the USD, the Japanese yen was able to record some gains as the USD fell by 0.1%. However, it is important to note that the drop in the value of the USD may have been as a direct result of the feds making plans to cut interest rates in a bid to stabilize the US economy. The effect of this is a weaker dollar trade.