While it is unclear if the China trade officials are ready to talk, President Trump upon leaving G7 in France, stated that his team was contacted by the Beijing side and as a result he would be serious about getting back to the table for talks. The Dow rallied 250 points on the Monday open in the New York. However, we have a view: This could be a Trump tactic or a Beijing tactic to stall of adjust positions for future talks. Still Trump then went on about how he has a great relationship with Xi Jinping and how he loves the great country of China and its people. Trump as we know is always signaling and with the messages he sends to the masses via twitter we can only guess what his true motives are.
Semi-conductor stocks such as Micron and Advanced Micro Devices advanced 1.1% and 2.5% respectively while Apple lead the way closing up 1.9%. The “hope” seems to follow a pattern in which each selloff over the past month is met with strong selling on any positive news.
China seems to be messaging as well, as its news agency said that the China side did not change its stance and will not cave in to US demands. So it does seem that the talks may still be on hold. Global Times Editor-in-Chief Hu Xijin, “The two sides have been keeping contact at technical level, it does not have significance that President Trump suggested. China did not change its position. China will not cave to US pressure.”