It could be described as a victory rally predicated on the belief that the US will win the US-China trade war, with Xi bowing in submission at the G20 meeting.
SINGAPORE (June 24): Markets in China and the US have jumped on the confirmation that President Xi Jinping and President Donald Trump will meet at the G20. The market reactions look similar, but they come from different causes. It seems unlikely that both rallies can be correct; only one can hold true.
In the US, this is a relief rally that can just as easily crash if Trump decides to send another tweet. The rally in US markets reflects the tweet-driven whipsaws that have characterised US markets for many months. The rally builds on Trump’s apparent success in forcing Mexico to give in to US demands.
