China and India recent political tendencies
Indian showed strongest stock rally over a three year at BJP exit poll lead while China is preparing for long trade war. Prospects of further reforms and policy continuity helped rupee and equities to grow.
Financial and industrial sectors were the biggest gainers of this even as BSE Sensex went up more than three percent due to the prospects of business-friendly reforms and political continuity.
The Indian rupee rebounded merely from a period of slowdown since April amid increasing oil prices by 1.1 percent to Rs69.54
Meanwhile, Xi Jinping is preparing China for a long trade war as Chinese president’s state apparatus could help him to outlast Trump. President Donald Trump signed an executive order laying the groundwork to ban the Huawei from the United States. Meanwhile, Cisco is slashing its manufacturing from China with the fear of higher import tariffs.
In response, famous Chinese movies on how China aided Korea in war against the USA started to reappear on Chinese primetime state television. This is one a few signs of China suggesting to what will be a protracted trade dispute against Washington. Xi Jinping is now preparing to drive his country into a full-scale trade conflict against the world’s leading technological and economic power, which looks similar to reinforcing Korean army during the four-year war in the 1950s. Mr Xi believes that he can lead a successful society-wide scuffle in the trade dispute just as they fought for their share in past in Korean conflict.
Chinese tight levers of control on party-controlled government, media, legislature and banking system gives confidence to continue the dispute as US institutions like the Fed and the House of Representatives can actually resist to US leader’s pressure.