The global elite who gathered at Davos discovered that it was worth the wait. Chinese president Xi has delivered a rollicking defense of globalization that would have been unthinkable from a Chinese leader in the past. It is worth noting that many of Xi’s remarks were aimed at one person, who certainly wasn’t at Davos, U.S. new president-elect Donald Trump. Xi insisted that a trade war would be in no-one’s interests, and dismissed protectionism as simply locking oneself in a dark room. His pointed reminders about the strength of the Chinese economy and the tourism that it provides to other nations were another jibe at those who think world trade has gone too far.
The dollar weakened and gold advanced ahead of President-elect’s Donald Trump inauguration. Stocks also declined as traders braced themselves for British Prime Minister Theresa May to set out her plan for leaving the European Union. It is worth noting that the greenback fell against most major currencies after the new President commented that the US currency is too high in part because China holds down its currency.
European Markets edged lower after trade concerns reignited in the U.K. after a speech by Theresa May. The British Prime minister has confirmed fears that Britain will seek exit the E.U. single market for goods and services and seek a completely new trading relationship. May has outlined her 12 priorities for upcoming divorce talks with the bloc. European markets were last seen trading mixed with Germany’s DAX adding 0.2 percent, U.K.’s FTSE 100 sliding 0.8 percent on a stronger pound, France’s CAC 40 adding 0.1 percent while the Euro Stoxx was last seen trading flat at 3299.0 as of 13:00 GMT.