Global Geopolitical Series: Trump’s Huawei intervention comments adds to trade truce positives

Global stock markets upbeat this week after heavy selling in the last, to which the arrest of Huawei’s CFO Ms. Meng contributed, who is also the daughter of the company’s founder contributed as investors expected a backlash to the ongoing negotiations as the clock ticks on the 90-day deadline that expires by March end.

However, this week there was positive news with regard to the trade war between the United States and China, which triggered optimism rally,

• First, it was reported that President Trump was not aware of the arrest of Huawei’s CFO, who was arrested by Canadian Authority after receiving an extradition request from the United States, which alleged that Ms. Meng knowingly and willingly violated U.S. sanctions on Iran.
• Secondly, it was reported that China is set to slash tariffs on the U.S. made cars to as low as 15 percent from the current 40 percent, just like President Trump tweeted after concluding his meeting with Chinese counterpart Xi Jinping at the sidelines of last month’s G20 meeting.
• Another positive news hit the market on Tuesday night, as Ms. Meng Wanzhou was released on $10 million bail.
• Finally, another round of good news came when president Trump announced that he might intervene in the case of Ms. Meng if that leads to a greater good for the United States, such as getting a trade agreement with China.

Australia’s ASX200 index is up 1.4 percent today as investors ride the optimism, while Hong Kong’s Hang Seng is up 1.9 percent. India’s Nifty, which was hit hard by abrupt resignation by the central bank chief is up almost 350 points, thanks to the optimism. Japanese Nikkei is also up 2.1 percent today, while U.S. benchmark futures are pointing to a higher open by as much as a percent.