Upward trend intact for S&P 500 and Shanghai index

PAUSING for a moment on the side of Huangshan mountain in China, I peered through the clouds down the more than 1,000 metre drop. It was a breathtaking and slightly terrifying view. Looking up, there were still more steps leading to the next peak beyond what was already a giddy high.

In the safety of my office I get a similar feeling when I look at the S&P 500 index and to a lesser extent, the Shanghai Index.

It is appropriate to examine these markets following the recent Apec summit in Korea and the outcome of the trade talks between China President Xi Jinping and US President Donald Trump. The Americans remain culturally oblivious to the nuances of the gift of face given to them by the Chinese. President Trump believes he has a resounding victory, placing the meeting outcome as a 12 out of 10.