Following talks in Hawaii this week China intends to increase purchasing of U.S agricultural products as it tries to meet its obligations to the phase one trade deal.
The world’s largest soybean importer is playing catch up after falling behind due to the COVID-19 pandemic. An unnamed source told Bloomberg news that the Chinese Government has asked stated-owned buyers to make all efforts to meet the phase one agreement.
Global markets have been concerned in recent weeks that the escalation in the war of words could hamper the deal, at a time confidence was fragile due to COVID 19.
Emerging Markets (stocks) have recovered losses from earlier in the week having posted 3 consecutive days of gains, as has the S&P 500 which having opened lower on week looks like it should produce a positive close. Other beneficiaries have been Chicago Soybeans, European shares, Yuan and most impressively the Baltic Dry Index which is up 59% on the week.
It would be hard to say that markets are risk on, as global stocks have already made an impressive recovery. However, compared to a week ago when the world passed 8 million infections, China were reporting an increase in cases and the S&P 500 was down 7%.
Bull closes this week, with China and the U.S. toning down their rhetoric, the situation looks a little rosier! (FIS)