Biden-Xi Jinping’s Call Creates Optimism for Trade Relations as Global Stocks and Oil Gains

Source: Markets Insider

Global stocks jumped Friday after President Biden and Chinese leader Xi Jinping held talks for the first time in seven months. SSE Composite Index up +0.27%, Hang Seng Index up +1.91%, Nikkei up 1.25%

• Dow Jones futures are 0.4% higher, while those on the S&P 500 and the tech-heavy Nasdaq improved 0.3%, implying a turn higher for US stocks when trading starts later in the day.
• On Thursday, the three major US stock indices ended lower after jobless claims data increased worries about global growth and the Federal Reserve ending winding down stimulus.
• On the telephone, Biden and Xi held talks about the responsibility of both nations to ensure competition does not move out into conflict.
• The reportedly respectful tone of the discussions helped to increase gains in Asian equities to end the week. 
• The Shanghai Composite gained 0.2%, and Hong Kong’s Hang Seng rose 1.8%, as Tokyo’s Nikkei jumped 1.2%.
• Jeffrey Halley, a senior market analyst at Oanda, stated that relief in Asia should be a powerful enough incentive for New York stocks to open higher and should provide momentum for oil prices.
• Biden/Xi phone call has had the same effect on the oil market as it has on other asset categories, with any hope that US/China relations are construed as positive for global trade and every asset.