President Trump and Chinese President Xi Jinping will be face to face at the G20 summit on November 30 at Buenos Aires in Argentina. Haibin Zhu of J.P. Morgan said there was a 55% chance that the two leaders of the largest global economies would come to a tangible agreement to settle their trade wars.
“We remain cautious, as the challenge to address US-China conflict remains high,” said Zhu. “The US-China conflict extends beyond trade to areas such as technology, intellectual property rights, market access, industry policy, and ultimately centers on the competition between the two economic superpowers.”
“It is not clear whether China is willing to make visible changes beyond trade (like on emarket access, IP protection, technology), and whether the US will prioritize its demand list,” Zhu added.
The S&P 500 and Nasdaq Composite were up a few points and 35 points, respectively, as of 11:00 a.m. ET. Apple bounced back by 0.57% after declining yesterday on Lumentum Holdings, the technology company responsible for the iPhone’s face-recognition capability, reducing its outlook for fiscal second quarter 2019.
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