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Asian markets to rise in relief after US and China declare 90-day ceasefire on trade war

2018-12-03 10:02:30       source:South China Morning Post

December 3, 2018

Asian markets, the first to begin trading after the leaders of the world’s two biggest economies agreed to halt escalating their trade war over the weekend, are likely to rise in relief on Monday, but analysts fear 90 days may not be enough for Beijing to solve the underlying structural issues to the satisfaction of the US.

The US and China reached a 90-day ceasefire in their trade war on Saturday after a dinner meeting between US President Donald Trump and Chinese President Xi Jinping at the G20 summit in Buenos Aires.

“The markets will be elated,” said Aninda Mitra, senior sovereign analyst at BNY Mellon Investment Management. “I see this is as a short-term risk positive development and safe havens should underperform in coming days. The interlude should see a stronger effort to set a framework for more talks and quid pro quos.”

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