D-Street cheers outcome of Trump-Xi talks, expects it to give market a leg-up
Both China and the US were expected to issue formal official statements later in the day.
By Amit Mudgill, ETMarkets.com | Updated:
NEW DELHI: A promising outcome from the talks between US President Donald Trump and his Chinese counterpart Xi Jinping on the sidelines of the G20 summit in Osaka, Japan, on Saturday is likely to give equity markets a leg-up, and domestic stock indices may see a gap-up start on Monday.
Trump on Saturday announced that trade negotiations with China were back on track after ‘excellent’ talks. Washington has reportedly agreed to hold off on new tariffs.
A K Prabhakar, head of research at IDBI Capital said the markets would cheer the announcement on Monday.
“The outlook for foreign flows into emerging markets will improve, as the development indicates US-China trade tensions will soon be behind us. It will also push up prices of crude oil and other commodities, which may be a negative for India in the long run. But for now, the market will cheer the news,” Prabhakar said.
Ambareesh Baliga, an independent market analyst, too felt the news is positive, and expect the market to see a bounce on Monday.
The news is someway on the expected lines, said Sameer Karla, Founder, Target Investing. “It might give markets a gap-up globally. But markets could eventually be a little sceptical about things because in the past such optimism over likely trade deal had met with bad experiences. Nonetheless, the fresh development could help metal stocks, and shares of businesses with global presence, such as Tata Motors,” he said.
Both China and the US were expected to issue formal official statements later in the day, but Chinese state media said Washington committed not to impose any new tariffs on Beijing's exports and the two sides had agreed to restart trade and economic talks, PTI reported.
"We had a very good meeting with President Xi of China," Trump said after the talks. "I would say excellent. We are right back on track," he added without confirming any details of any agreement.
S&P500 futures settled 22.62 points, or 0.77 per cent,higher at 2,953.62 on Friday. For the week gone by, BSE Sensex and NSE Nifty gained 0.51 per cent and 0.55 per cent, respectively.
Trump on Saturday announced that trade negotiations with China were back on track after ‘excellent’ talks. Washington has reportedly agreed to hold off on new tariffs.
A K Prabhakar, head of research at IDBI Capital said the markets would cheer the announcement on Monday.
“The outlook for foreign flows into emerging markets will improve, as the development indicates US-China trade tensions will soon be behind us. It will also push up prices of crude oil and other commodities, which may be a negative for India in the long run. But for now, the market will cheer the news,” Prabhakar said.
Ambareesh Baliga, an independent market analyst, too felt the news is positive, and expect the market to see a bounce on Monday.
The news is someway on the expected lines, said Sameer Karla, Founder, Target Investing. “It might give markets a gap-up globally. But markets could eventually be a little sceptical about things because in the past such optimism over likely trade deal had met with bad experiences. Nonetheless, the fresh development could help metal stocks, and shares of businesses with global presence, such as Tata Motors,” he said.
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Both China and the US were expected to issue formal official statements later in the day, but Chinese state media said Washington committed not to impose any new tariffs on Beijing's exports and the two sides had agreed to restart trade and economic talks, PTI reported.
"We had a very good meeting with President Xi of China," Trump said after the talks. "I would say excellent. We are right back on track," he added without confirming any details of any agreement.
S&P500 futures settled 22.62 points, or 0.77 per cent,higher at 2,953.62 on Friday. For the week gone by, BSE Sensex and NSE Nifty gained 0.51 per cent and 0.55 per cent, respectively.
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