Headlines: China president Xi says mutual respect is key to stable US-China ties China purchases of soybeans are all taken care of, says Bessent Trump and Xi had a good meeting, says White House official USD/JPY flirts with a key upside breakout as yen’s intervention-led gains…
ntinue to fade Nasdaq analysis today after Trump and Xi met ECB’s Kazaks: Preserving anchored inflation expectations is the priority for ECB policy BOJ policymaker Masu warns that yen depreciation may raise inflation expectations Spain inflation eases a little in April but still much higher than before US-Iran conflict UK Q1 preliminary GDP +0.6% vs +0.6% q/q expected China new bank loans disappoint in April as sluggish start to the year continues Markets: S&P 500 futures up 0.3% on the day WTI crude down 0.2% to $100.80 as Middle East conflict continues to brew European stocks higher, DAX up by 1.3% in holiday-thin trading Major currencies subdued, US dollar lightly changed across the board US 10-year yields down 3.8 bps to 4.44% Gold up 0.3% to $4,703 while silver is down 1.1% to $86.98 Bitcoin down 0.4% to $79,328 The focus and attention in markets has moved further east today, with all eyes on US president Trump’s visit to Beijing. He met with China president Xi Jinping as the two leaders sat down to talk about a host of issues but mainly on trade and maintaining cordial relations amid a time of global economic turbulence
It is all mostly for show, even if there will be some deals to be struck – likely on agriculture and perhaps Boeing airplanes. Besides that, we should see some opening up in terms of business deals such as on AI and microchips, as well as investment outlays. But all in all, the whole point of this is to give some reassurance that the two major powers are no longer locking horns – for now at least – after the tariffs war last year.
Still, one can easily dissect the different narratives put out by each side following the meeting. The US communique focused more on trade