The report which stated that the trade deal between China and The US has got canceled made its negative impact on Asian stock market since many major stock indexes closed slightly higher than what anticipated. Chinese stock market is currently much volatile to the news relating to trade war or deal. China’s major stock indexes Shanghai Composite and Shenzhen components ended slightly higher which was not anticipated by the investors. China’s officials have declared that the government will boost fiscal expenditure in this year to stimulate the country’s economy. China’s economy is getting lots of hits because of the weak economic growth and in countering attack the government has recently declared exemption of more than 1.3 trillion Yuan in taxes to help out businesses and many other sectors. The export and import sector of the country has not performed well in last year, and that’s why the government decided to exempt that much amount of taxes.
On the other side, The US stock market also hasn’t performed well because of this news about the cancelation of trade meeting. A few days ago the same reaction came from the investors when the IMF declared the slow economic growth for the year 2019. China is trying their best to improve the damage made by the trade war but experts think exempting taxes and duties is not going to solve their problem and hence the trade negotiation is necessary.
However white house officials have denied that news and said no meeting had been canceled with China regarding the trade negotiation. The white house official said that there was no planned meeting, but it never got canceled. However, this clarification from the white house came a little bit late since the damage has already been done.