FX.co ★ China Stocks Wobble After Trump-Xi Call

The Shanghai Composite and Shenzhen Component indexes hovered near their baseline on Friday, struggling to establish a decisive trend as investors analyzed the implications of a recent phone call between U.S. President Donald Trump and Chinese President Xi Jinping. The discussion ended with an agreement to continue negotiations, following a cooling in the latest tension over rare earths, though no specific details were disclosed. Despite this diplomatic approach, investor sentiment remained cautious, anticipating that geopolitical tensions between the U.S. and China would endure as both powers continue to challenge each other's economic fortitude. Attention is now directed towards the release of Chinese inflation and trade data on Monday, which is expected to offer new insights into the health of the world's second-largest economy. Significant gains were observed with Avic Chengdu rising by 6.3%, Hengbao Co by 2.2%, and Tianjin Benefo by 10%. Meanwhile, Shenzhen Forms saw a decline of 5.0% and Talkweb Information fell by 2.2%. Looking at the week's performance, both major indexes are poised to register an increase of over 1%.