Donald Trump skillfully uses quite extraordinary tactics to build a relationship with China. At first, he slaps his opponent with a raft of tough sanctions, then eases the pressure in order for Beijing to feel the difference. That's how it happened this time. Trump moved to restrict access of Huawei to the US technology, thereby lowering its stock prices, and then admitted that the Chinese tech giant could become part of a trade deal.
“It is possible that Huawei even would be included in some kind of trade deal. If we made a deal, I could imagine Huawei being included in some form or some part of a trade deal,” he said. These actions confirmed the view of a number of experts that the threats directed against one of the world's largest smartphone makers were just his negotiating tactics and a means of applying pressure on China.
As a result, we have seen an instant and positive reaction of the markets to this news: the key indices have recovered from the previous downs. As long as the positive trend is being maintained, index futures, along with oil prices, are expected to grow further. In general, it is the market dynamics that makes Donald Trump tick. According to some experts, the mood of the US president is highly dependent on the movement in the market. While the stock value is increasing, he makes rather tough statements. While it is falling, the statements become dovish.
