Analysts at TD Securities point out that the meeting between Trump and Xi has resulted in no new tariffs on Chinese exports for now, a decision to restart trade talks, and some concession on Huawei in exchange for US agricultural purchases.
Key Quotes
“The outcome was largely in line with market expectations and our own baseline. The Huawei news suggests that Trump may be more willing to cut a deal. It reduces the tail risk of tariffs increasing on the remaining $300bn of Chinese exports into the US. However, there are few details currently available about what equipment US companies can sell. There is also no timeframe set for further talks, which should help limit the risk-on market reaction. Focus will shift to data.”
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