The ALL ORDINARIES Index (ASX: XAO), which represents a large group of ASX shares, is up around 0.75%.
Thankfully, international media are reporting the latest positive step between the US and China.
You may remember several months ago that the US labelled China as a currency manipulator. Today, it was announced that the US has reversed that decision. The United States said it made the change because China had agreed to stop devaluing its currency to make its own products and goods cheaper for foreign buyers.
The yuan has appreciated since August 2019 and China had made enforceable commitments to refrain from devaluation and that it would share more information about its exchange rates.
Many of the tariffs between the two countries remain, but things aren't getting worse and these moves are another step on the path towards the trade war ending.
The BHP Group Ltd (ASX: BHP) share price is up 1% to $40 again. The Fortescue Metals Group Limited (ASX: FMG) share price is up 1.3% to almost $11 again. The Commonwealth Bank of Australia (ASX: CBA) share price is reaching a 52-weeek high. Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE) is at an all-time high, it's up another 1.3%.
It's great to see that share markets are reaching all-time highs, it's certainly better than all-time lows. But I think it speaks to the fact that investor sentiment is now reaching a high point. Maybe investors are getting too bullish?
Foolish takeaway
The share market is hard to predict, but it's in the interests of both the US and China to get something done.
