The bullish breakout continues
The Shanghai Composite index is now up by 4% on the day as Chinese equities are surging on the back of trade optimism after negotiations in Washington concluded last week. As mentioned on Friday, the breakout then was a vote of confidence of trade talks progress and so far the headlines aren't disappointing investors despite the lack of significant details.
However, the strong rally today is so far much limited to Chinese stocks as other equities in the region are showing milder gains and US equity futures are also not as upbeat posting 0.2% gains so far after the initial gap higher.
But so far the overall more optimistic tone across equities and risk is helping to see the aussie and kiwi lead gains in the currencies space.
In case you missed the earlier US-China trade headlines:
- China official press reports Trump to delay tariffs on China
- 'Risk' gets a boost, yen lower, on Trump's delay of China tariffs
- Trump says will postpone tariff hike on China (helped 'risk higher, yen lower)
- Trump: US has made substantial progress in trade talks with China on important structural issues
- US - China trade talks, 'source' says progress has been across the board
