The ALL ORDINARIES Index (ASX: XAO), which represents a large group of ASX shares, is up around 0.75%.
Thankfully, international media are reporting the latest positive step between the US and China.
You may remember several months ago that the US labelled China as a currency manipulator. Today, it was announced that the US has reversed that decision. The United States said it made the change because China had agreed to stop devaluing its currency to make its own products and goods cheaper for foreign buyers.
The yuan has appreciated since August 2019 and China had made enforceable commitments to refrain from devaluation and that it would share more information about its exchange rates.
Many of the tariffs between the two countries remain, but things aren’t getting worse and these moves are another step on the path towards the trade war ending.
The BHP Group Ltd (ASX: BHP) share price is up 1% to $40 again. The Fortescue Metals Group Limited (ASX: FMG) share price is up 1.3% to almost $11 again. The Commonwealth Bank of Australia (ASX: CBA) share price is reaching a 52-weeek high. Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE) is at an all-time high, it’s up another 1.3%.
It’s great to see that share markets are reaching all-time highs, it’s certainly better than all-time lows. But I think it speaks to the fact that investor sentiment is now reaching a high point. Maybe investors are getting too bullish?
The share market is hard to predict, but it’s in the interests of both the US and China to get something done.
The post ASX shares rise as US – China trade deal draws closer appeared first on Motley Fool Australia.
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Motley Fool contributor Tristan Harrison owns shares of VANGUARD FTSE ASIA EX JAPAN SHARES INDEX ETF. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020