China and the US trade negotiators agreed to meet in October – Danske Bank

Danske Bank analysts suggest that the global risk sentiment is supported by the news that China and the US trade negotiators have agreed to meet in early October.

Key Quotes

“Overnight Chinese Vice Premier Liu He announced that the Chinese side has agreed to visit Washington 'in early October' after a telephone call with US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer, according to a statement from China's Ministry of Commerce.”

“The US trade representative's office also confirmed that talks will take place. Lower level ministerial discussions between the two sides will take place in the coming weeks ahead of the October meeting. While the market may welcome the news in the short term, we are sceptical that the two sides genuinely can break the impasse.”

“Risk sentiment was also supported yesterday by the decision by Hong Kong to withdraw the extradition bill, possible monetary easing in China seeking to lower reserve requirement for banks and reduced risk of an imminent no-deal Brexit.”