US-CHINA: Beijing Is Open To Raimondo China Visit

Jul-13 07:37

MNI London: Comments hitting wires from the Chinese Commerce Ministry stating that China is "open" to a visit from US Commerce Secretary Gina Raimondo and is, "in communication with the US side," ... "pushing for constructive, pragmatic cooperation," with the US.

  • Raimondo has been instrumental in crafting much of the Biden administration policy on semiconductor and tech export controls and is considered by many analysts to be the US official most central to stabilising the US-China commercial relationship.
  • Wu Xinbo, at Fudan University, told the NYT after Treasury Secretary Janet Yellen's China trip last week that a Raimondo visit would be, "critical in showing whether the United States is ready to address China’s concerns."
  • Raimondo met her counterpart, Wang Wentao, in Washington in May, the first cabinet-level meeting since the 'spy balloon' incident, with the Commerce Department reporting, "The two had candid and substantive discussions on issues relating to the U.S.-China commercial relationship."
  • Beijing's willingness to expand cabinet-level talks suggests that the Yellen trip achieved its primary objective of reopening lines of communication and a Biden-Xi meeting at the November APEC Summit in San Francisco remains on the cards.

Historical bullets

EQUITIES: Tech stocks lead in Europe

Jun-13 07:36
  • Stoxx600 sees Tech leading, up 1.70%, and highest since January 2022.
  • Not much in terms of resistance until 768.89, the 76.4% retrace of the Dec2021/Oct 2022 fall
  • The Risk On tone keeps the lid on the USD.

Chart source: MNI/Bloomberg

USD: EUR and GBP test session highs

Jun-13 07:29
  • The EURUSD test the 1.1800 handle, with next immediate resistance coming at 1.0812 50-day EMA values.
  • For Cable, next upside target is at 1.2599 High June 12.

EQUITIES: EU and US roll pace

Jun-13 07:24
  • VGA: 31%.
  • Dax: 32%.
  • FTSE: 41%.
  • ESA: 53%.
  • NQA: 46%.
  • DOW: 53%.