Shanghai Composite trims early gains despite trade optimism
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- Stocks in China have retreted from session highs.
- US stock futures trade at record highs on SIno-US trade optimism.
- Hopes for coroanvirus vaccine are also boding well for riskier assets.
Chinese stocks have trimmed early gains despite the Sino-US trade optimism, positive news on the coronavirus vaccine front and record levels in the S&P 500 futures.
The Shanghai Composite, China’ s equity index, is trading largely unchanged on the day near 3,393 at press time, having hit a high of 3,409 a few minutes ago. Other Asian indices like Japan’s Nikkei, South Korea’s Kospi are up at least 1%, while shares in Hong Kong are reporting moderate losses.
Elsewhere, the futures tied to the S&P 500 are trading at a record high of 3,445 – up 0.45% on the day.
Top trade negotiators from China and the United States held a phone conversation late Monday (US time) to review the progress of the phase one trade deal, as noted by the South China Morning Post.
The statement released by the US trade representative Robert Lighthizer said, “the parties addressed steps that China has taken to effectuate structural changes called for by the agreement that will ensure greater protection for intellectual property rights, remove impediments to American companies in the areas of financial services and agriculture, and eliminate forced technology transfer.”
The constructive talks have happened a day after the Financial Times reported that the Trump administration is planning to provide an "emergency use" approval of the experimental coronavirus vaccine from AstraZeneca and Oxford University in October. However, U.S. infections diseases expert Anthony Fauci warned on Monday that rushing out vaccines could undermine trials of other promising candidates, according to Reuters.
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