US and China meet to give direction for the markets - BBH

Analysts at BBH suggests that the end of the week will feature the US and Chinese presidents having their first face-to-face meeting which will be very important event for directing further direction of markets.  

Key Quotes

“Trump has toned down the bellicose rhetoric in which he accused China of “raping” America, threatened to abandon the one-China policy, and promised to cite China as a currency manipulator “on day one.”  

“China seems to have made a few concessions.  It has banned coal imports from North Korea, and the US had long wanted China to do more to rein in its ally.  It has also granted Trump a little more than three dozen trademarks.”

“When Japanese Prime Minister Abe visited President Trump recently, the two agreed to trade talks that would be led by the US Vice President Pence and Japanese Finance Minister Aso.  This may very well serve as the template for the US and China.  Such talks, incidentally, are also similar to part of the consequences of the US Treasury finding a country guilty of currency manipulation.  That report is due later in the month, and given the current criteria, China is unlikely to be cited.  Also, President Xi may announce some new commercial activity and purchases of US goods, which is part of China’s modus operandi.”