get_geodata_regions(); Comments From China This Morning Keeping Risk Assets Down - Forex News by FX Leaders

Comments From China This Morning Keeping Risk Assets Down

Posted Monday, November 25, 2019 by
Skerdian Meta • 1 min read

At the end of last week, we heard US President Donald Trump say that the Phase One deal with China is very close to being completed. That improved the sentiment for a while, but we have heard such comments before from both sides, so markets are not convinced until the deal is signed. China doesn’t seem too optimistic either. Chinese officials made a few comments earlier this morning:

Comments by the Chinese foreign ministry

  • Hopes US will work on basis of equality, mutual respect on trade
  • Reiterates opposition to foreign meddling of HK affairs

The Global Times citing some comments by the Chinese foreign ministry

  • “The #US is used to suppressing specific countries and enterprises without any solid evidence, said Chinese FM, slamming the #FCC for barring China’s #Huawei and #ZTE from supplying US carriers in rural areas.
  • This economic bullying by the #US side blatantly flouts US’ principle of market economy. If this principle does not need to be adhered to, other countries can also do the same to US companies: Chinese FM”

Comments from the People’s Bank of China

  • Downward pressure on economy is increasing
  • But economic resilience is still relatively strong
  • Potential risks, problems will be difficult to eliminate in the short-term
  • China will continue to implement prudent monetary policy, proactive fiscal policy
  • To further improve financial support to the real economy
  • Will steadily resolve shadow banking risks

The Hong Kong issue is going to be yet another thorn in the backside for future trade talks, even if the Phase One deal is signed soon. The positive news is that China will pump more money through monetary and fiscal easing, which we already knew. So, that’s more of a long term positive thing, while the short term situation seems pessimistic.

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