First, Trump tweeted that he had a long and very good conversation with Chinese President Xi Jinping and talked a lot about trade.
Later, Xinhua News Agency issued a circular. The first sentence was that President Xi Jinping made an ordinary telephone call with President Trung on the 1st day. The content of economic and trade accounted for a large proportion.
A telephone call across the Pacific has become a good news for the global stock market.
China is a direct train, Hou Yu Tong.
Global stock market rises
One phone call went up.
Lets start with stocks. On the 2nd day, the Dow rose 264.98 points, or 1.06%, to 25380.74; the S& P 500 index rose 28.63 points, or 1.06%, to 2740.37; and the index rose 128.16 points, or 1.75%, to 7434.06.
Looking specifically at the performance of major technology giants in the US stock market, Netflix rose 5.17%, Amazon rose 4.23%, Apple rose 1.54%, Facebook fell 0.03%, Google fell 0.63%, Microsoft fell 0.83%. Although the ups and downs, but the total increase is far greater than the decline.
In the U.S. stock market, China Stock Exchange rose sharply, with the top five rising rates being Merchandise Club (up 17.28%), Pingduo (up 15.24%), Huazhu (up 14.72%), Sogou (up 13.94%) and Aiqiyi (up 13.39%).
Look at the A share market. The three major stock indices are moving higher and higher collectively. Banks and insurance companies in the market continue to exert their efforts. Subject stocks are fully active, and the three major stock indices continue to rise.
As of the close, the Shanghai index rose 2.7%, to 2676.48, the Shenzhen index rose 3.96%, to 7867.54, the GEM rose 4.82%, to 1348.28. Nearly 3400 stocks in the two markets were red, less than 100 stocks closed down.
Not only American and A shares are affected, but the Hang Seng Index, Korea Composite Index, Nikkei 225, Philippine Composite Index, Indonesian Composite Index and Malaysian Composite Index all rose except Saudi Arabia.
Market expectation improvement
The logic behind the telephone calls and the rise in the stock market is actually one sentence. International trade tensions are expected to ease, thus boosting investor confidence.
Shi Bin, head of asset management at UBS, believes that the general decline in Chinas stock market in the past period mainly comes from systemic risk of macro factors, one of which is that the length and extent of the Sino-US trade war exceeded the original expectations.
Sino US trade war is finally possible to reach an agreement. Shi Bin said that the reason is that the trade war is not good for both sides. Recent adjustments in the U.S. market have reflected widespread concerns about the trade war. In the future, if the trade war can be alleviated to a certain extent, it will have a more positive impact on the market.
Shi Bin said that although these two days were only good news, it is not certain that trade frictions will be resolved within a certain time point, but it is enough to stimulate the stock market to rise.
At present, what the whole world needs is the expected repair. As Cheng Shi, chief economist of ICBC International, said, in order to avoid extraordinary market shocks, the global policy environment needs to change rapidly. Major authorities urgently need to find collective rationality and coordinated stabilization expectations.
So how much is this behind the phone in the Pacific? In terms of the total market capitalization of stock markets, it will be an astronomical figure. From a larger perspective, this call may serve as a catalyst for the return of the worlds top two economies to stable cooperative relations, thus benefiting the development of the world economy.