ING analysts point out that after a breather of more than two months, Chinese and American trade representatives return to the negotiation table next week.
“While President Trump sees a ‘good chance’ of a trade deal ‘sooner than you think’, the news of Chinese companies starting to purchase US agricultural goods this week with a waiver from retaliatory import tariff bodes well for the upcoming talks.”
“Even so, caution is warranted given the breakdown of earlier negotiations. President Trump’s on-and-off rhetoric against China’s trade practices and the US now considering limiting financial flows to China too means the risk of yet another negotiation round ending in vain still exists.”
“Aside from the trade developments, there is little on the Chinese calendar to drive markets after a week of pause in trading for the National Day holiday this week.”