Chinese President Xi says he's willing to work with US President Trump in the Chinese New Year, Xinhua reports

This statement from President Xi indicates a willingness to foster better relations with the US, which markets may interpret as a potential easing of trade tensions.

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Chinese President Xi says he's willing to work with US President Trump in the Chinese New Year, Xinhua reports

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[MARKET UPDATE] Upticks seen (but contained to) US equities following the US President Trump post in which he called the phone call with Chinese President Xi "excellent" and confirmed a trip to China in April; Modest strength seen in CNH

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  • Says he emphasises having good relationship with the US.
  • The US should deal with Taiwan issue with caution, adding that it remains a crucial issue in US-China relations. 
Context

The emphasis on the Taiwan issue as a critical point reflects ongoing geopolitical complexities that could impact market sentiment across equities and currencies, particularly in USD and JPY. Overall, this could signal cautious optimism for risk assets if negotiations proceed positively, but the sensitivity around Taiwan remains a significant risk factor.

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