Performance of equity markets shows importance of connections between Beijing, Washington

By Xiao Xin Source:Global Times Published: 2018/12/2 21:48:39

hell yeah wrath of the dead rabbit crack pc An important trade consensus China and the US reached on the sidelines of the just-concluded magic crack summit in Argentina is unlikely to prove to be a magic stimulant for US stocks, which are still under the pressure of squeezing out bubbles. With trade woes increasingly weighing on the US economy and Wall Street, there is a growing case for the US to improve the linkage between US stocks and Chinese mainland shares.

At a working dinner on Saturday, the leaders of the two countries agreed to avoid escalation of trade restrictions, according to the Xinhua News Agency. The news is surely encouraging for global markets on edge over the trade tussle between the world's top two economies.

Nevertheless, there are still anxieties about a 90-day deadline, according to a White House statement regarding the high-profile meeting, for the two countries to reach a broader trade agreement

This means Wall Street will still have worries about the impact on the US market of the trade dispute.

It seems increasingly the case that behind the China-US trade friction lies the interconnectedness of their stock markets.

While mainland stocks appeared to be initially hit by the trade woes, a deep correction of US stocks since October points to rising challenges to the US equity market from the trade dispute, which is also piling more pressure on global markets, including the Chinese mainland market.

There are growing signs that in the case of both countries, an upward trend in either the equity market or the economy at large is connected to bilateral economic ties.

The connection can't be unduly cut, or the US stock market would certainly go through a period of agony.

With the US stock market still trying to squeeze out bubbles, it would be quite helpful if the US can push for greater cooperation with China and allow for joint benefits.

If the world's two largest economies were to be disconnected from each other, as the Trump administration has envisioned, the US market would indisputably face a disastrous crash.

In this sense, it is of vital importance to ensure that the stock markets in both countries wouldn't be cut off. While the Saturday consensus appears not to be directly related to the stock markets, a growing belief about market interconnectedness across the Pacific is likely to draw more attention to the stock market interpretation of the China-US trade row.

The next step will be more efforts by both sides, Washington in particular, to assure the markets of well-functioning connectivity.

The author is a reporter with the Global Times. crack on knee




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