​EBC Markets Briefing | ​Yuan gains from Trump-Xi talk; Tesla pushes for FSD in Europe

The Chinese yuan edged up on Tuesday on risk-on sentiment. It has shrugged off a trade war, slow growth, rock-bottom interest rates and a slump in foreign investment, to head for its sharpest annual gain since 2020.

A White House official confirmed that Trump and Chinese president Xi had agreed to reciprocal in-person meetings. The first will be a meeting in Beijing in April and a state visit in the US will be scheduled later in the year.

China made its biggest daily purchase of American soybeans in two years, in a move that ends a temporary pause and appears to signal a commitment to a trade truce reached last month.

China's broad fiscal spending slumped in October by the most since at least 2021, reflecting an evolution of government policies and waning support for the world's second-largest economy.

500 billion yuan in special local government bond quota was announced in mid-October, but only 40% of it was meant for qualified provinces to invest in projects in order to manage debt risks.

China's benchmark bond yield is poised to fall below Japan's, a historic crossover that may reignite fears of a deflationary spiral that began to paralyze its neighbor in the 1990s.

The yuan showed an ascending triangle pattern, which pointed to a rise above 7.0850 per dollar in the short term. A break below 50 SMA could be needed to negate the bullish bias.

Asset recap

As of market close on 24 November, among EBC products, ProShares UltraPro QQQ ETF led gains. Tech stocks recorded their biggest daily gain in six months on Monday, as mounting expectations of a Fe rate cut.

Tesla has outlined its plan to launch Full Self Driving in Europe starting February 2026. The carmaker will need to spend time satisfying all the requirements for the Article 39 exemptions.

Paramount, Comcast and Netflix have all submitted first-round bids to buy some or all of Warner Bros Discovery. Among them, Paramount is reportedly the only bidder that is interested in buying the entire WBD.

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