China-US trade tensions impact aviation deals

What happened: President Trump's visit to China sparked optimism around a potential Boeing aircraft deal. Prediction market traders gave an 86% chance of a Boeing purchase, with Trump later announcing a 200-jet order. Meanwhile, Chinese carrier China Southern Airlines signed a deal for 101 Airbus jets, indicating ongoing demand for Western aircraft despite trade tensions. Trump's personal investment in Boeing stock also increased, with purchases totaling up to $5 million.

Market impact: Boeing's stock price surged on the news, benefiting from the perceived boost in demand and potential resolution of trade tensions. The aerospace sector as a whole saw uplift, with Airbus also benefiting from China Southern's order. However, the deal did not entirely alleviate trade concerns, as China continues to support Iran, potentially impacting future Boeing sales.

What to watch next: Boeing's Q2 earnings report on July 24, which may provide further clarity on the China deal and overall demand trends. Additionally, monitor U.S.-China trade negotiations for any updates on tariff truce extensions or further aviation deals. Lastly, keep an eye on geopolitical developments, particularly U.S.-Iran relations, which could impact Boeing's international sales.