Chinese markets jumped up after the words of US Treasury Secretary Stephen Mnuchin about a “productive working dinner”, noting progress in trade negotiations. China A50 blue-chip index of China stocks soared more than 4% on Friday, breaking the 13,000 level at the close of trading. This is the highest market close since March 2018. At the beginning of the month, the index had already tried to climb higher, but quotes could not hold on to these levels, opening the way for a prolonged correction.
Despite the fact that the negotiations are clearly tough and not as fast as previously planned, one by one, the positive comments from the officials support optimism in the Chinese markets.
The second attempt of the index to develop growth has a higher chance of success, as the market has consolidated strength in previous weeks.
Alexander Kuptsikevich, the FxPro analyst