In the meantime, the markets are also worrying over a tangible trade deal between the U.S. and China despite U.S. President Donald Trump and Chinese president Xi Jinping agreeing to cease fire on their tariff-for-tariff battle last weekend. The truce reached at the G-20 Summit didn’t quell investor fears as markets fretted on the notion that a trade deal can only materialize after lengthy discussions between the two economic superpowers.
The reality that a tangible and permanent trade deal is necessary for the markets to continue responding to the upside might be settling in and the probability of reaching an agreement didn’t improve after news broke that Meng Wanzhou, the CFO of Huawei, one of the world’s largest mobile phone makers, was arrested in Canada and faces extradition to the U.S. Investors reacted to Wanzhou’s arrest negatively as it could possibly squelch a permanent trade deal between the U.S. and China.
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