Forex – Weekly Outlook: July 1 – 5

© Reuters.  © Reuters. – Market sentiment will be dictated by hopes for progress on the trade front after the U.S. and China agreed on Saturday to restart talks. The week will also bring the U.S. jobs report for June along with reports on U.S. manufacturing and service sector activity, factory orders and the trade balance.

Washington and Beijing agreed to restart trade talks after U.S. President Donald Trump offered concessions, including no new tariffs in order to reduce tensions with Beijing.

No deadline was set for progress on a deal, and the two sides remain at odds over significant parts of an agreement. The last major round of talks collapsed in May.

Financial markets, which have been rattled by the nearly year-long trade war, are likely to cheer the truce.

The world’s two largest economies have slapped tariffs on billions of dollars of each other’s imports, threatening to put the brakes on an already slowing global economy. Those tariffs remain in place while negotiations resume.

The U.S. dollar dipped on Friday after U.S. economic data confirmed the likelihood of a July interest rate cut, although foreign exchange markets remained subdued ahead of the meeting between the U.S. and China at the G20 summit in Japan.

The core U.S. personal consumption expenditure price index rose 0.2% in May, as expected, reinforcing investor expectations that the Federal Reserve will cut rates by 0.25% next month.

The , which measures the U.S. currency against six of its peers, was at 95.73 in late trade, broadly unchanged on the week.

Against the , the greenback last traded at 1.1368, though it has fallen by around 1.7% in the past couple of weeks.

The dollar traded at 107.89 , a touch higher on the day as the greenback mounted a recovery from a five-month low of 106.77 yen reached on Tuesday.

Meanwhile, the recovered on Friday from the five-month lows it reached earlier in the day against the dollar and , although worries about a no-deal Brexit capped the currency’s gains.

, has compiled a list of significant events likely to affect the markets.

Monday, July 1

China Caixin manufacturing PMI (Jun)
FOMC Member Clarida Speaks
ISM manufacturing PMI (Jun)

Tuesday, July 2

RBA interest rate decision
FOMC Member Williams Speaks

Wednesday, July 3

ADP) nonfarm payrolls (Jun)
Initial Jobless Claims
U.S. trade balance (May)
U.S. factory orders (May)
ISM non-manufacturing PMI (Jun)

Thursday, July 4

U.S. market holiday

Friday, July 5

U.S. nonfarm payrolls (Jun)

–Reuters contributed to this report

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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Forex News

China PMIs for June: Manufacturing 49.4 (vs. 49.5 expected) & Services 54.2 (54.2 expected)

These are the official PMI survey results, from NBS, for June 2019. The private survey PMIs (Caixin/Markit)will follow from Monday.

Manufacturing 49.4

  • expected 49.5 (range of ‘expecteds’ was 49.0 to 50.1 according the Bloomberg survey of 29 analysts)
  • prior 49.4
  • As you can see, unchanged on the month but down slightly on expected, and still in contraction. Yesterday’s ‘truce’ between the US and China on trade will likely give the July figure a boost, all else being equal. 
  • new export orders sub measure fell further

Non-manufacturing 54.2 

  • expected 54.2, prior 54.3
  • an expansionary reading for this is more encouraging that the contraction for manufacturing  (despite this, the result is still down from earlier this year)

Composite is 53.0 

  • from prior 53.3

This is the past 3 years of the manufacturing PMI:
These are the official PMI survey results, from NBS, for June 2019. The private survey PMIs (Caixin/Markit)will follow from Monday.

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Trump crosses over the DMZ while meeting with Kim Jong Un


President Trump became the first U.S. president to step onto North Korean soil on Sunday when he crossed over the Demilitarized Zone while meeting with Kim Jong Un. Mr. Trump and Kim shook hands and Mr. Trump hailed his “great relationship” with Kim.

Mr. Trump also invited Kim to the White House.

In an earlier press conference with South Korean President Moon Jae-in, Mr. Trump said the meeting is “just a step” but he hoped it would be an “hopefully a step in the right direction.”

Trending News

Both Moon and Mr. Trump said it is too soon to say if there will be a third summit after the failed summit earlier this year in Vietnam.

Trump: “Feels great” to be first president to step into North Korea

Speaking before the media, Mr. Trump said it “feels great” to be the first U.S. sitting to step into North Korea. “It was an honor to do that,” Mr. Trump said.

“This is a special moment — and as President Moon said, this is a historic moment,” Mr. Trump said.

Kim praised Mr. Trump, calling it a “courageous and determined act.”

Trump invites Kim to the White House

Mr. Trump has invited Kim to the White House. Although Mr. Trump said the meeting could be just a handshake, the meeting appeared to be more substantial.

Moon also shook hands with Kim, which was a change from earlier when Moon said he would not be coming along for the meeting.

Trump crosses over in the DMZ

U.S. President Trump and North Korean leader Kim Jong Un meet at the Korean Demilitarized Zone
U.S. President Donald Trump meets with North Korean leader Kim Jong Un at the demilitarized zone separating the two Koreas, in Panmunjom, South Korea, June 30, 2019. KEVIN LAMARQUE / REUTERS

Mr. Trump made history by becoming the first sitting U.S. president to step onto North Korean soil when he crossed over the DMZ after sharing a symbolic handshake with Kim.

Trump on the way to Panmunjom

Mr. Trump is on the way to Panmunjom, the truce village located in the DMZ. He is poised to meet with Kim in Panmunjom.

Trump meets with troops

Mr. Trump and Moon visited with American and South Korean troops ahead of Mr. Trump’s meeting with Kim Jong Un. Mr. Trump said he would be meeting with Kim “in about four minutes.”

Moon complimented Mr. Trump for bringing the “great change” between relations.

“nNw the security area is being transformed from symbol of hostility to symbol of peace,” Moon said. “You are part of change and the very person that has brought this change has been President Trump. He is the president in front of all you.”

Mr. Trump repeated that this visit had been set “a number of months ago,” but “yesterday, I had the idea, maybe I’ll call Chairman Kim and see if he wants to say hello.”

A service member gave Mr. Trump a windbreaker and a baseball hat. “.We hope it might find you some utility out on the golf course,” the soldier said.

Trump visits observation area

U.S. President Donald Trump and South Korean President Moon Jae-in are seen at the demilitarized zone (DMZ) separating the two Koreas, in Paju
President Trump and South Korean President Moon Jae-in are seen at the demilitarized zone (DMZ) separating the two Koreas, in Panmunjom, South Korea, in this still image from video taken June 30, 2019. South Korean Pool/via Reuters

Mr. Trump visited an observation area at the DMZ, accompanied by Moon.

The visit gave him his first look into North Korea. This is his first visit to the DMZ, since weather prevented him from going the last time he was in South Korea.

Trump arrives at DMZ

Mr. Trump has arrived at the DMZ, where he is scheduled to visit an observation post and greet U.S. and South Korean troops.

Mr. Trump arrived by Marine One helicopter.

Pompeo will go to the DMZ with Trump, official says

An administration official said Secretary of State Mike Pompeo will be joining Mr. Trump at the DMZ. Pompeo said Sunday that the U.S. is ready to resume talks with North Korea “at a moment’s notice.”

But as recently as Wednesday, North Korea blasted Pompeo for making “reckless remarks” in a recent State Department report.

Moon says third summit is possible after meeting

Trump and South Korean President Moon Jae-in speak to reporters

Moon said he will not be attending the meeting at the DMZ but he will be at the DMZ.

“As for inter-Korean dialogue, this will happen at a later time,” Moon said.

As for a third summit, Moon said it depends on how Sunday’s meeting turns out.

Mr. Trump chimed in to say Sunday’s meeting is “just a step– it might be an important step, but it might not.”

“Let’s see what happens today before we start thinking about” a third summit, Mr. Trump said.

Trump says “I’m in no rush” for deal

Mr. Trump repeated that he only decided on Saturday to extend the invitation to Kim.

“We’re going to be heading out to the DMZ, and something I planned long ago,” Mr. Trump said, “but had the idea yesterday to maybe say hello — just shake hands quickly and say ‘hello’ — ’cause we haven’t seen each other since Vietnam.” He went on to say that he and Kim had a “great meeting” in Vietnam and that Vietnam may have been “more important” than the Singapore summit, though he did not explain why that would have been the case.

Mr. Trump said he isn’t in a rush to reach a deal. “If you’re in a rush, then you get yourself in trouble,” Mr. Trump said.

Moon: Kim will be coming to DMZ

Moon kicked off the press conference by saying Kim Jong Un will be joining them at the DMZ.

“I hope President Trump can be the president who achieved peace on the Korean peninsula,” Moon said.

Trump: “Both teams are working very hard” for meeting with Kim

After the bilateral meeting with Moon, Mr. Trump said “there is a possibility that we will be meeting Kim Jong Un.” Mr. Trump said he and Kim both want to meet, and “both teams are working very hard.”

South Korean president will join Trump at DMZ

South Korean President Moon Jae-in will join Mr. Trump at the DMZ. But Moon said the focus of the dialogue will be between Mr. Trump and Kim.

“I hope you can achieve great progress,” Moon said.

Trump: A “lot of good things are happening with North Korea”

Mr. Trump told reporters after a meeting with South Korean business leaders that a “lot of good things are happening with North Korea.”

Mr. Trump said he wanted to see the DMZ. On Saturday, he described the DMZ by referring to it as a real border.

As for meeting Kim, Mr. Trump said “we’re trying to work it out. “

“It’s going to be very short,” Mr. Trump said. “A handshake means a lot.”

Trump would be “very comfortable” crossing over the DMZ

At a press conference before Mr. Trump left Japan on Saturday, he said he would be “very comfortable” crossing the DMZ, one of the most heavily fortified borders in the world, into North Korea.

No sitting U.S. president has ever visited North Korea. In 2009, former President Clinton — already out of office — went to Pyongyang to negotiate to free two imprisoned American journalists. Former President Carter visited in 1994 and met with Kim’s grandfather, Kim Il Sung.

Mr. Clinton visited the DMZ in 1993, and former President George W. Bush visited in 2003 shortly before he declared the country part of the “axis of evil.”

Trump puts out “feeler” to Kim

Mr. Trump called his invitation via tweet to Kim Jong Un a “feeler.” Mr. Trump sent a tweet saying “if Chairman Kim of North Korea sees this, I would meet him at the Border/DMZ just to shake his hand and say Hello(?)!”

“He sent me a very beautiful birthday card and I just–what I did is–and I guess he got my return letter, because it’s in the newspaper, it’s him reading the return letter,” Mr. Trump said Saturday in Japan. “But I just put out–I just thought of it this morning. We’ll be at the area, we may go to the DMZ, or the border as they call it.”

Mr. Trump’s summit with Kim in Vietnam earlier this year collapsed without an agreementfor denuclearizing the Korean Peninsula. South Korea’s government said earlier Friday that North Korea is ready for talks with the U.S.

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World –

U.S.-China trade talks: where they are and what’s at stake

© Reuters. Chinese President Xi Jinping arrives at the G20 leaders summit in Osaka © Reuters. Chinese President Xi Jinping arrives at the G20 leaders summit in Osaka

(Reuters) – U.S. President Donald Trump and Chinese President Xi Jinping are due to meet on Saturday at the Group of 20 (G20) summit in Japan to try to resurrect a deal to end a costly trade war.

Negotiations between trade teams from the world’s two largest economies broke down in May when Washington accused Beijing of reneging on commitments to change its laws to enact economic reforms.

Here is a look at the state of talks, the key issues and their implications:


After over a month with little contact, it’s unlikely the two sides will make much headway on a trade deal at the summit.

One possible outcome would be for Xi and Trump to agree to delay further escalation of the dispute while talks continue at the negotiator level. That would be a repeat of what was agreed when the two presidents last met at the G20 in Buenos Aires in 2018.

U.S. officials have repeatedly said they want to avoid drawn out negotiations with China, however.


Trump did not agree to any preconditions for his high-stakes meeting with the Chinese president and is maintaining his threat to impose new tariffs on Chinese goods, White House economic adviser Larry Kudlow said on Thursday.

Neither side has signaled it would shift from positions that led to the impasse last month, when Beijing revised a draft of the trade deal, removing references to changes in Chinese law.

U.S. Trade Representative Robert Lighthizer said the changes substantially weakened the deal. Lighthizer has repeatedly called for a strong, enforceable deal.

U.S. officials have said that the resumption of talks would depend on China returning to the original text.

Lighthizer told a congressional hearing this month that China also backtracked on commitments on digital trade issues, including U.S. access to cloud computing services in China.

China has downplayed its changes, and also said U.S. demands violate its sovereignty. Foreign ministry spokesman Geng Shuang said on Friday he hoped the U.S. side could meet China halfway.

WHAT CONCESSIONS HAD BEEN AGREED AND WHAT WERE THE STICKING POINTS?Before the talks broke down, U.S. officials had said the two sides made progress on intellectual property protection and that China made proposals on a range of issues that went further than Beijing had gone before.

For example, China for the first time discussed forced technology transfer as a widespread problem. China had previously refused to acknowledge that such coercion had existed to the extent alleged by the United States. U.S. companies complain they are pressured to hand over their competitive secrets as a condition for doing business in China.

U.S. officials also said they had made progress on cyber theft, services, currency, agriculture and non-tariff barriers to trade.

China had offered to bring subsidies in line with World Trade Organization guidelines but had not detailed how it would do that.

For its part, the United States had watered down demands China end industrial subsidies, which would require a change in China’s state-driven economic model.

U.S. officials have said China offered to make purchases of over $ 1 trillion worth of goods over the next six years, including agricultural and energy products as well as industrial goods. China has said, however, that there is still disagreement between the two sides on the actual purchases.

One of the key sticking points until talks broke down was the timeline for removal of the 25% tariffs on $ 250 billion worth of imported goods from China that the Trump administration has already imposed. The United States wanted to keep some tariffs in place to ensure that China met the terms of the deal, but China demanded all tariffs be lifted immediately.

Another contentious issue was the plan for a regular review of China’s compliance, a mechanism that would maintain the perpetual threat of U.S. tariffs.


One of the biggest U.S. concerns is who will dominate future high-technology industries. China is determined to upgrade its industrial base in 10 strategic sectors by 2025, including aerospace, robotics, semiconductors, artificial intelligence and new-energy vehicles.

Washington’s demands for change follow years of steadily rising U.S. trade deficits with China and U.S. complaints that Beijing has systematically obtained American IP and trade secrets through coercion and outright theft.

The USTR says China’s subsidies to state enterprises, including at the provincial and local government levels, have also led to an unsustainable build up in industrial capacity in China – such as in steel – that has depressed global prices and hurt producers in the U.S. and elsewhere.

U.S. officials argue that China’s massive support for state-owned enterprises makes it hard for U.S. companies to compete on a market-driven basis.

They say they do not have a problem with China moving up the technology ladder, but they do not want it to happen with stolen or unfairly obtained American know-how or in a market in which Chinese firms have an unfair advantage.


Chinese officials generally view the U.S. actions as a broad effort to thwart the Asian country’s rise in the global economy. They previously denied China required or coerced technology transfers, saying that any such actions are commercial transactions between American and Chinese firms.

Beijing says three main sticking points remain between the two sides in trade negotiations. They are the removal of tariffs imposed in the trade war, the scale of goods purchases from the United States that China will make to help reduce the trade imbalance between the two, and the need for a “balanced” text for any trade deal.

China has pledged to buy more U.S. goods in the future to reduce the trade imbalance between the world’s two largest economies, and has taken some steps to open up more markets to foreign competition.


In addition to the tariffs on $ 250 billion worth of imported goods from China, Trump is preparing to extend tariffs to the remaining $ 300 billion of Chinese imports, and will be in a position to make a decision on implementing them after July 2, when a public comment period closes.

Trump has also blacklisted China’s Huawei Technologies Co Ltd , citing national security concerns. This effectively banned U.S. companies from doing business with Huawei, and many non U.S.-based global technology firms have since cut ties with the company, the world’s largest telecommunications equipment maker. China has demanded the United States lift those restrictions, trade deal or no.

The United States is lobbying other countries to reduce dealings with Huawei and threatened to blacklist other Chinese firms.


China has imposed tariffs of 25 percent on $ 110 billion worth of U.S. goods, including soybeans, beef, pork, seafood, whiskey, ethanol and motor vehicles.

China has said it would draft its own list of foreign companies that it deems had harmed Chinese companies. That could serve as the basis for retaliation against U.S. companies for action against Huawei.

China has also indicated it may strike back through limiting rare earth supplies to the United States. Rare earth are minerals important to manufacturers of high-tech consumer goods and China is the dominant supplier.

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Forex News

Trump – Xi meeting: US agreed to no new tariffs on China goods

Positive news via China state media (Xinhua, CCTV) on a trade war truce:

  • The US will not levy new tariffs on Chinese goods
  • US and China to restart trade talks
  • US and China trade teams will have talks on detailed issues

US President Trump:

  • We had an excellent meeting with Xi
  • As good as it was going to be
  • thinks “we are back on track” with China

Should be a positive for risk come Monday morning. But do bear in mind this is not a trade deal. Talks to restart. 

Positive news via China state media (Xinhua, CCTV) on a trade war truce:

Still to come this weekend, scheduled for 30 June 2019 at 0100GMT – China official PMIs:


  • expected 49.5, prior 49.4


  • expected 54.1, prior 54.3


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Dressed to kill: Video games’ tricky relationship with fashion

What do you look for in a great video game?

Fast-paced action? A strong storyline? Perhaps even an atmospheric soundtrack?

It’s probably safe to say that decent fashion sense is unlikely to be top of your list. But when developers get it wrong players notice.

“It kind of creates a really jarring experience,” said Victoria Tran, a community developer at Kitfox games, the Canadian indie studio behind titles including Boyfriend Dungeon and Lucifer Within Us.

“It’s a piece of world building that’s really overlooked,” she told the BBC

Earlier this year, Ms Tran gave a talk called, Why Fashion in (Most) Games Sucks, at San Francisco’s Game Developers Conference. She acknowledged that, at first glance, it might seem like a superficial concern. But she argued that getting it wrong could undermine a game’s mood and feed into sexist stereotypes.

Getting it right, she said, could make a story feel richer and become a form of self-expression, especially when there are options to customise a protagonist’s outfits. And for studio chiefs weighing up the costs involved, just consider how much titles like Overwatch and Fortnite have made from selling the “skins” that change their characters’ looks.


In Ms Tran’s opinion, one of the worst offenders is Resident Evil 3.

Jill Valentine is a cop in the 1999 survival-horror game. She wears a blue tube top, black skirt, white jacket tied around her waist and a pair of brown boots. Ms Tran let out a sigh when she looked at a picture – as zombie-killing outfits go it seems more than a bit impractical, and is a far cry from some of the combat-ready suits the character wears in the title’s sequels.

“One of the things outfits can really do is create an interesting silhouette so that you know they’re a main character. There’s nothing exciting about [Jill’s] outfit other than…” she paused briefly.

“Actually, there’s nothing exciting about it at all.”

Captain Bulky

Complaints aren’t restricted to the clothing given to female virtual cast members. At the recent E3 games expo, one of the big “unveils” was a first look at the video game Marvel’s Avengers.

But when the trailer debuted, many fans were critical about how the superheroes looked. It wasn’t just that their faces barely resembled the actors in the movie-based adaptations. There was also something off about their iconic clothing.

Captain America’s costume looked “overly bulky”, wrote news site IGN’s Joshua Yehl, and Thor appeared to have a “sound system mounted on his chest”. In response to the criticism, the game’s developer Crystal Dynamics said: “We are always listening to, and welcome feedback from our community [but] there are currently no plans to change our character designs.”

No nail polish

Of course, fashion goes beyond the clothes a character wears.

“I just want a ponytail with a fringe so that I can create a character that kind of looks like me,” Ellen Rose from YouTube’s OutsideXtra told the BBC. “It’s often so difficult, like you have five pre-set hairstyles for women and it’s usually so vast in real life. And it’s the same with guys’ hair as well.”

It’s not the first time such an observation has been made. In 2016, user Quinn_flower posted on a Grand Theft Auto (GTA) forum asking: “Why can’t I wear boots with jeans? Why no long hair or nail polish?”

“Seriously the female clothing need to be overhauled ASAP,” it concluded.

Even though the comment was posted more than three years ago, the comment thread is still very active.

Last month, another player – nicknamed Coleco – added: “Limiting player options for colour choices and styles is just boring and means I’m not spending my in-game cash on accessories. I’ve been sitting on millions of unused GTA money I can’t do anything with for actual years because I want to look like something other than GI Jane.”

More options mean more investment, and developers might not always believe the extra effort is worth it. There is a bit of development time required to make those changes,” noted Matt Diener, an analyst at NPD Games.

“Things like GTA Online are perhaps the most difficult – you’re dealing with a large range of equipment and outfits, and additions need to be applied to different character models.”

But the benefits of adding cocktail dresses or platform sandals can pay off.

“We want to feel we are like these characters,” claims Ms Tran. “You want to feel like you’re at your most powerful.”

Rockstar Games – the maker of the GTA series – declined to comment.

Gender balance

Some gamers believe part of the problem is a lack of diversity within the games studios themselves.

“It’s not because they don’t want to [provide options] – it’s just because they might not think of that,” Ms Rose suggested. “[But] as the games industry gets more diverse, you do see way more options opening up.”

The 2019 State of the Gaming Industry survey indicated women now make up 19% of the field – an increase of 2% on the previous year.

The studios that are really innovating and creating the most progressive, accurate depictions of female characters, or really any any group of characters based on cultures, genders, sexual representation, sexual orientations etc are really starting to recognise the value of authenticity,” Mr Diener said.

“They’re getting members of those groups involved in the creative process and they’re able to strive for and achieve authenticity by this.”

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BBC News – Technology

Judge bars Trump from using $2.5 billion to build border wall

A federal judge on Friday prohibited President Trump from tapping $ 2.5 billion in military funding to build high-priority segments of his prized border wall in California, Arizona and New Mexico. Judge Haywood S. Gilliam, Jr. in Oakland acted in two lawsuits filed by California and by activists who contended that the money transfer was unlawful and that building the wall would pose environmental threats.

“All President Trump has succeeded in building is a constitutional crisis, threatening immediate harm to our state,” said California Attorney General Xavier Becerra, who led a 20-state coalition of attorneys general in one lawsuit.

Speaking Saturday at a press conference marking the end of the Group of 20 summit in Osaka, Japan, Mr. Trump called the decision “a disgrace.”

Trending News

“So we’re immediately appealing it and we think we’ll win the appeal,” he went on to say. “There was no reason that that should have happened. And a lot of wall is being built.”

The decisions are in line with Gilliam’s ruling last month that blocked work from beginning on two of the highest-priority projects — one spanning 46 miles in New Mexico and another covering 5 miles in Yuma, Arizona.

But the fight is far from over. The U.S. 9th Circuit Court of Appeals is expected to take up the same issue of using military money next week.

At issue is Mr. Trump’s February declaration of a national emergency so that he could divert $ 6.7 billion from military and other sources to begin construction of the wall, which could have begun as early as Monday.

Mr. Trump declared the emergency after losing a fight with the Democratic-led House that led to a 35-day government shutdown.

The president identified $ 3.6 billion from military construction funds, $ 2.5 billion from Defense Department counterdrug activities and $ 600 million from the Treasury Department’s asset forfeiture fund.

The judge Friday didn’t rule on funding from the military construction and Treasury budgets.

In the second suit, brought by the American Civil Liberties Union on behalf of Sierra Club and the Southern Border Communities Coalition, the judge determined that the use of the $ 2.5 billion for two sectors of the wall was unlawful, although he rejected environmental arguments that wall construction would threaten species such as bighorn sheep.

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U.S. –

Trump relents on tariffs, Huawei as US-China trade talks set for a revival

What to look out for when markets open next week?


Trump and Xi once again managed to use their affinity to help strike a compromise in getting trade talks back under way earlier today.

Of note, Trump said that the US will not be levying new tariffs against China while also allowing for Huawei to purchase equipment from US companies – saying that he and Xi have agred to leave the “complicated” Huawei issue until the end of what appears to be an open-ended trade truce between the two countries.

Although Trump relented on his stance, he didn’t give any firm commitment on whether or not Huawei will be pulled from the entity list and says that the Commerce Department will meet in the coming days to review what products can be sold to Huawei.

I reckon the very notion of trade talks being revived is likely to give markets a bit of a relief on Monday even though much of this has already been anticipated. The key now will be to measure whether or not this optimism can last the course as negotiations are set to continue in the coming weeks/months.

Besides that, just be on the look out for any official statement release by both the US and Chinese camps when markets open next week. So far, China has said that they hope that Trump will deliver on the Huawei issue but didn’t really elaborate on any details pertaining to what other details both sides will be discussing in future negotiations.

As for any official statements, the interpretation of the language will be key. There’s no doubt China will be the more cautious and less upbeat of the two in building up market optimism after the recent setback in trade talks in May but we’ll see.

For now, I reckon the ‘back on track’ sentiment should lend risk assets a tailwind in the opening sessions next week with the moves likely to be more evident among equities and gold. As for FX, a risk-on gap at the open is very much in the offing given all the anticipation last week and the dollar may also see some gains as traders will surely now further question odds of a 50 bps rate cut by the Fed next month.

But it won’t be too long before traders and investors start asking themselves whether or not the concessions made here can lead towards a deal in the bigger picture.

In my view, the more structural issues remain a difficult gap to bridge for both countries unless they’re willing to move their red lines. We’ll see if that changes but I highly doubt a trade deal is imminent despite talks being revived. As such, it’ll only be a matter of time before markets – and any optimism from today – have to deal with that reality as well.

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Chinese envoy says Syngenta takeover was a bad deal: report

© Reuters. Syngenta logo is seen at its China headquarters in Beijing © Reuters. Syngenta logo is seen at its China headquarters in Beijing

ZURICH (Reuters) – Beijing’s ambassador to Switzerland said ChemChina’s $ 43 billion takeover of seed and agrochemicals firm Syngenta was a mistake, adding he would have tried to stop the 2017 deal had he been in Bern at the time, a newspaper reported in an interview on Saturday.

“If I had been the ambassador a year earlier, the takeover wouldn’t have taken place,” Gen Wenbin was quoted as telling the Tages-Anzeiger newspaper, without giving specific reasons for his opposition to the deal.

“It wasn’t a good deal for the Chinese side. It was for Switzerland: It got $ 40 billion. If Switzerland wants Syngenta back, I would convince ChemChina to sell it. But is there anybody at all in Switzerland who wants Syngenta back?”

Basel-based Syngenta was listed on the SIX Swiss Stock exchange when it was bought by ChemChina, so shareholders received the money from the deal that closed in 2017.

After the takeover spurred debate over foreign countries expanding in Switzerland, Swiss politicians are debating a measure in parliament that could require government approval of sales of Swiss companies to foreign entities.

Other big Chinese investments in Swiss companies include HNA Group’s purchase of airline caterer Gategroup and ground services and cargo handling firm Swissport.

Gen Wenbin said criticism in Switzerland’s media over such transactions had driven potential Chinese investors to look elsewhere.

“They’re going to Germany,” the ambassador told the daily newspaper.

Syngenta did not return a phone call and email seeking comment on Saturday. No one could immediately be reached to comment at the Chinese embassy.

The former Swiss firm is targeting growth through acquisitions in the $ 17 billion Chinese seed market, where access is restricted for foreign players, as well as new products and collaborations in technology.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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