Xi Speaks, Stock Bulls Listen: Risk is On Globally
$DIA, $SPY, $QQQ
- A new era in the Age of Prosperity is seen
Appetite for risk on is strong Tuesday morning, as Chinese President Xi Jinping offered plans to further open up the 2nd largest economy.
Xi’s public speech at the Boao Forum came days after the US and China exchanged tariffs threats, which had kept investors on edge for some weeks. He promised to lower import tariffs for autos, as well as on some other products, open up the financial and insurance sectors, and most importantly, to increase protection to intellectual property.
Xi’s speech calmed markets by responding to all of US President Donald Trump’s concerns, without even mentioning him by name
What was achieved Tuesday at the Forum is likely to reduce trade tensions and buy extra time. Whether the US will wave back with an olive branch to China remains to be seen, but for sure the probability of a full-blown trade war is now off of the tables as expected.
Asian equities were all in the Green this morning with the Hang Seng Index and Nikkei 225 climbing more than 1%.
Futures are also indicating a positive start to Europe and US, the S&P 500 (SPY) futures are up 1.3% at the time of writing.
|NAME||TIME (EDT)||FUTURE DATE||LAST||NET CHANGE||OPEN||HIGH||LOW||2 DAY|
|3:21 AM||Jun 2018||24,298.00||+286.00||24,004.00||24,373.00||23,947.00|
|3:21 AM||Jun 2018||2,651.25||+32.25||2,617.75||2,658.00||2,612.25|
|3:21 AM||Jun 2018||6,607.00||+110.00||6,490.50||6,624.75||6,471.75|