The markets can be reassured, the outcome of the meeting Trump-Xi which took place today in Japan in the framework of the G20 seems to be rather favourable.
At the end of his meeting with the chinese president Xi Jinping, Donald Trump announced that it had eased restrictions on Huawei in the framework of a truce in trade with Beijing, which eliminates an immediate threat, with no guarantee of a lasting agreement.
Remember, that it is whispered already last week that China had to impose this condition to the lifting of the ban of Huawei, to accept a truce commercial and the resumption of negotiations.
Trump has also said that the chinese president Xi Jinping had promised to buy quantities “huge” of us agricultural products in return.
“We’re going to give them a list of things that we would like them to buy,” said Trump at a press conference.
After Trump and Xi meet Saturday at the G-20, the two countries are planning to resume the trade negotiations that have failed in early may.
Trump has also confirmed to journalists that he would not execute his threat of additional charges on China for the moment.
The return to the negotiating table puts an end to a deadlock of six weeks, which has disrupted markets and spreads, at least for the moment, the risk that the two largest economies in the world are heading towards a new cold war.
There is, however, never guaranteed that this new truce leads to the final trade agreement a sustainable, since the divergences that have led to the failure of a previous truce remain the same on the bottom.
Nevertheless, we can probably expect a positive impact on the markets stock market next week, and also on the Dollar, to the extent that the prospect of an easing of the trade war reduces the probability that the Fed lowers its rates in the coming months.