It's better to talk than not to talk; the fundamentals of the raging bull are gradually taking shape!
As soon as news of progress in negotiations broke, global capital markets reacted positively:
U.S. Stock Market: The three major U.S. stock index futures opened over 1% higher, with Nasdaq futures up 1.5%, S&P 500 index futures up 1.4%, and Dow futures up 1.2%. Chinese concept stocks are expected to continue their strong performance from last Friday, when the Nasdaq Golden Dragon China Index surged 3.5%.
Hong Kong Stock Market: The Hang Seng Index soared 1.74% last Friday to 22,504.68 points, and the Hang Seng Tech Index rose sharply by 3.08%. The triple long FTSE China ETF (YINN) briefly hit a 10% increase during the session, ultimately closing up 9.64%.
A-Share Market: After opening today, tech stocks led the gains, particularly in sub-sectors like AI computing power and semiconductor equipment. The offshore RMB exchange rate appreciated over 600 basis points to 7.211 last Friday, indicating a significant rebound in market risk appetite.
Commodities: Gold prices adjusted down by 1.2% due to decreased safe-haven demand, while oil prices rose on improved demand expectations.
The Geneva tariff negotiations mark the first high-level dialogue between China and the U.S. since the escalation of the trade war, with both sides showing a willingness to ease tensions while adhering to their respective bottom lines. Initial progress was made in negotiations, establishing a consultation mechanism, but specific tax reduction plans and long-term agreements will still require further discussions, potentially prolonging the negotiation process for several months.
Note: The above information is based on public reports and social media posts before May 12, 2025, and some details may not be fully disclosed due to closed-door negotiations.
Brothers, the fundamentals of the raging bull are gradually taking shape!
