Trade doubts lurk in yuan fixing amid ‘markets rally’

Bloomberg

Considering the lack of enthusiasm for the so-called mini trade deal in China, the country’s disappointing trade data, an unexciting yuan fixing and the cautious-sounding analyst commentaries, it was a wonder that emerging markets were able to make any headway at all. But catch-up was predictably the order of the day following the US rally, so
most currencies strengthened, bonds were marginally higher and stocks in South Korea, China, Taiwan and Thailand led the MSCI Index to a second successive gain.
The yuan’s appreciation was possibly the most significant because it came after a fixing that was in line with the result of a Bloomberg survey. As Bloomberg’s Singapore-based emerging-market strategist, Simon Flint, wrote, the Chinese could have demonstrated their enthusiasm for Friday’s apparent progress with a symbolically stronger fix. The fact that they didn’t might be a good reason to remain skeptical a meaningful currency pact can be achieved. The 0.4% gain in the yuan throws an even sharper focus on tomorrow’s fixing because it gives the Chinese authorities another chance to show their feelings.
The zloty extended its advance to a fifth day as Poland’s ruling Law & Justice party looked set for another four years in power after the election, a result that would be in line with expectations.