Connect with us

Bussiness

Trump 2.0 sparks limited response from China, why and what’s next? – London Business News | Londonlovesbusiness.com

Published

on

Trump 2.0 sparks limited response from China, why and what’s next? – London Business News | Londonlovesbusiness.com

With Trump’s second term as U.S. President now secured, markets are watching closely for China’s response to his policy directives.

Traders had initially expected that the authorities would roll out extensive stimulus measures to counter potential economic headwinds at the early November National People’s Congress Standing Committee meeting.

However, the outcome failed to meet expectations, with traders disappointed at the lack of demand-side initiatives.

Last Friday, on the day the NPC meeting concluded, the CN50 and Hang Seng Index saw notable pullbacks of 5.4% and 4.9%, respectively. The selling pressure on the Hang Seng continued to build, pushing the index below the 20,000 mark, the May high of 19,790, and the 50-day moving average. This decline suggests limited obvious technical support in play, although the 61.8% Fibonacci Retracement level of the late September rally at 19,355 may get some focus.

Continue Reading