The big week
Welcome to the last week of June 2019. This weekend, world leaders will travel to Japan for the G20 summit. However, the focus of the media will be on the meeting between the leaders of the world’s two largest economies. Donald Trump and Xi Jinping will meet in Osaka on June 29–30 to discuss the trade war. While an immediate resolution to the ongoing trade war is not expected, markets will be closely looking for any hope in the release after the meeting.
Today, an Indian newspaper said that India’s Prime Minister Narendra Modi, Chinese President Xi Jinping, and Russia’s Vladimir Putin will also hold a trilateral meeting on the sidelines of the G20 summit to consider a joint front to counter the US. While Russia has been hurt by US sanctions, India has been a target of President Trump for running a trade surplus against the US.
While Asian markets were mixed, China’s Shanghai Composite Index gained 0.21% to end on a positive note for five days in a row. However, the tech-heavy Shenzhen Component ended in the red today.
On Friday, China-focused ETFs ended in the red. The KraneShares CSI China Internet ETF (KWEB) was the biggest loser among major China-focused ETFs with a 1% loss. However, during the last week, the ETF gained 5.27%. Alibaba (BABA) and Baidu (BIDU) together account for 14% of the ETF’s holdings. Last week, Alibaba and Badu gained 5.98% and 3.39%, respectively.