3 Mutual Funds To Buy Amid Positive Trade Deal Vibes

Wall Street gained in Dec 12 trading, owing to investor optimism around an affirmative solution to U.S.-China trade dispute.

A news report claiming that China was planning to allow more foreign companies to access to its domestic market and President Donald Trump’s proposal to intervene in a legal case involving Chinese giant Huawei helped in lifting market sentiment.

A trade deal between the United States and China would be extremely beneficial to large-cap technology stocks. Therefore, it would be ideal to invest in a few mutual funds from the sector.

Trump’s Huawei Statement Boosts Investor Sentiment

On Dec 11, Trump offered to intervene in a legal case that involves the arrest of Huawei’s chief financial officer Meng Wanzhou, during an interview with Reuters. The President’s comments helped boost financial markets in anticipation of a trade war resolution.

Wanzhou, who had been arrested in Vancouver by Canada on Washington’s behest earlier this month, was released on bail on Dec 11 and is due to appear before a court on Feb 6. Beijing had been enraged at Wanzhou’s arrest and protested, leaving investors fearing a possible impediment to trade negotiations.

Chinese Market Entry to Foreign Businesses to Propel Stocks

In addition, China’s proposal to replace its ambitious Made in China 2025 program and allow foreign businesses greater access to the Chinese market is a promising move toward a trade agreement, per a Wall Street Journal report.

The policy had been criticized at length by the Trump administration, citing China’s protectionist attitude toward its domestic companies. Chinese President Xi Jinping had aimed to encourage indigenous tech companies, intending to make China a leader in cutting-edge technologies.  

A new policy could raise fewer eyebrows in Washington, which has criticized Beijing for its inability to protect intellectual property rights, as well as the forcible handover of crucial technological advances.

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