And that ends the sidetracking period for markets, with the focus and attention now switching back to the Middle East.
Trump’s visit to China to meet with Xi was mainly for show, with both sides wanting to reaffirm to the world that the two major powers are keeping more stable relations in a time of economic turbulence. That especially after the tariffs war last year that strained ties between the two countries.
There will be agreements on trade and a couple of other things to take away from the show in Beijing this week. However, don’t expect that to change much in terms of the big picture between the US and China.
Soybean purchases, Boeing airplane orders, tech investments, and AI chip orders. There will be some gestures of goodwill to tie a ribbon around the state visit this week but it won’t extend beyond that. We’ve seen this all before and one too many a time already.
Meanwhile, there was very little emphasis on the Middle East conflict and Iran situation. And for market players who were hoping that there might be something, they will be left disappointed heading into the weekend it seems.
