What Does This Year’s G20 Summit Mean for the Markets?
A face-to-face meeting between Chinese President Xi Jinping and US President Joe Biden took place for the first time since 2017. They discussed their joint commitment to charting a new course towards a better bilateral relationship during a side event at the G20 summit in Bali, Indonesia.
Alex Doonanco, Director of Strategic Projects at the North American Ecosystem Institute, gives his perspective on what this year’s G20 Summit might mean for the markets:
Alex’s Thoughts on the G20 Summit
“As we know, Chinese President Xi Jinping, and President Biden opened up this year’s G20 Summit in Bali with a three-hour face-to-face conversation, the first of its kind in Biden’s presidency. Now, what does this mean for the bilateral relationship and what does this mean for the markets? First looking at the idea of the conversation as a whole this is a good sign from the respect of diplomacy and potential military conflict cooling up that side.
However, if we look at the markets, I think there’s a really key principle that was really repeated and reiterated throughout the conversation, which is that both parties agreed not to unilaterally disrupt the status quo. However, I think we can all agree that the existing status quo is quite troubling, especially when we look at the trade war that has already been very destructive to each economy, respectively.”
