(24 October 2019 ) DAILY MARKET BRIEF 2:Waiting for clearer signs in China

A lot of investing in China this year has depended on trade negotiations with the US, and recent trade talks between the two countries were constructive.

The White House shelved the tariff increase scheduled for this month, and Beijing is expected to make large purchases of US agricultural products. Although details are scant and signing will have to wait until the APEC summit in November, the optimism for a deal that would halt further tariff escalations has lifted market sentiment and supported risk assets like equities and corporate bonds.

However, China’s domestic macro developments are not conclusive enough to position portfolio for a stronger economic growth backdrop, according to UBS CIO Global Wealth Management analysts.