Biden Said Talks With China's Xi Going Well; Senior U.S. Official Said Talks Lasted Over Four Hours
Portfolio Pulse from Charles Gross
President Biden has indicated that his discussions with China's President Xi Jinping are progressing positively. A senior U.S. official reported that the talks lasted over four hours, suggesting a significant diplomatic engagement between the U.S. and China.
November 15, 2023 | 11:35 pm
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POSITIVE IMPACT
The iShares China Large-Cap ETF (FXI), which tracks the investment results of an index composed of large-capitalization Chinese equities, could see a positive impact from the extended talks between the U.S. and China as they may ease tensions and improve trade relations.
Positive diplomatic talks between the U.S. and China often lead to optimism in the markets regarding trade and economic relations. This can result in increased investor confidence in Chinese equities, potentially benefiting ETFs like FXI that are focused on large-cap Chinese stocks.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index, may experience a positive short-term impact due to the positive sentiment from the prolonged U.S.-China talks, as improved diplomatic relations can lead to a more stable global economic environment.
The S&P 500, and by extension SPY, is sensitive to international diplomatic and trade developments. Positive engagement between the U.S. and China, two of the world's largest economies, can reduce uncertainty and support a risk-on market environment, which is generally favorable for equities.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60