Summary for the 1st of July


The weekend’s G20 meeting yielded positive results. The biggest news was that President Donald Trump crossed the border from South Korea into North Korea to greet with the country’s leader, Kim Jong-un. This was considered a symbolic milestone. President Trump had already tweeted to Kim about the greeting prior the G20 meeting. Trump was thus the first sitting US president that ever visited North Korea. Former presidents Jimmy Carter and Bill Clinton had also visited North Korea, but only after they left the office.

More important for the financial markets was the meeting between President Trump and the Chinese President Xi Jinping. The meeting ended positively, and Trump confirmed after the meeting that the US would temporarily be postponing the implementation of tariff on 300 billion dollars’ worth of Chinese goods. He also indicated that the US companies would be permitted to resume sales to the Chinese telecommunications company, Huawei, and that the ban would only be for items that could pose security threats.

The Secretary of the Treasury, Steven Mnuchin, stated last week that the US and China trade deal was 90% done, which was similar of what he stated earlier this year. Even though there’s still only 10% left for a trade deal, the Chinese leaders had been cleared about not accepting some of the changes of the trade deal. China’s top trade negotiator, Liu He stated in May that the remaining disagreements were a matter of principles that China couldn’t give in.

Indices for 01.07.2019
Dow: +0.3% (28th of June)
S&P 500: +0.6% (28th of June)
Nasdaq: +0.5% (28th of June)
Nikkei: +2.1%  (1st of July)
Chinese indices: +2.9% (1st of July)
STOXX Europe 600 Index: +0.78% (1st of July)

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