Trade negotiations seem to remain the market’s main preoccupation and resulted in the three major U.S. indices to break multi-week gains. The Chinese President called for cooperation at a critical juncture after the domestic administration unanimously passed a bill in the Senate aimed at supporting Hong Kong protestors and warning China against violent suppression of the demonstrators – President Trump has yet to sign the bill into law. This weekend millions of Hong Kong citizens are expected to take part in what are normally mundane district council elections as these protestors look for greater democratic rights. The Aramco IPO details are more open now, with the company selling a 1.5% stake in the oil giant looking to raise up to $25.6 billion, giving it a potential market value between $1.6 and $1.7 trillion, which would make it the world’s most valuable company.
Global equities ended the week lower after parsing through the latest trade comments from both the U.S. and Chinese leaders. Despite the unrest that has gripped the city of Hong Kong over the last several months and plunged the economy into recession, Sunday marks the Hang Seng index’s 50th anniversary. The index, which has evolved over time to a proxy for the entire Chinese economy, is up close to 16,700% according to data compiled by Bloomberg, making it the best performing index in the world over this time period. President Trump and Fed President Powell had a ‘very good and cordial,’ according to the former, on discussions of monetary policy and the economy, while Treasury yields traded in a tighter range than previous weeks, ultimately ending slightly lower on the long end as risk assets had their pullback.
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