Boeing Stock In Spotlight As China Deliveries Reportedly Resume: Retail Cheers Trade Truce

Boeing (BA) stock garnered retail attention over the weekend after reports that the company has resumed aircraft deliveries to China.

A Boeing 737 Max registered N230BE landed at the aerospace giant’s Zhoushan completion center in China, data from the plane tracking website Flightradar24 showed.

The resumption will be a relief to the planemaker. In April, China asked airlines not to accept Boeing jets amid trade tensions with the U.S. Later, Beijing lifted the restrictions on Boeing deliveries following a trade agreement reached in Geneva between the U.S. and China.

Flight tracking data showed the aircraft took off from Seattle on Saturday before stopping at Hawaii and Guam to refuel. A Reuters report said that the plane was painted with the livery of Xiamen Airlines.

China represents about 10% of the planemaker’s backlog and is a key aviation market. In April, Boeing stated that it was expected to deliver 50 aircraft to China for the remainder of the year.

Last week, Bloomberg had reported that China was exploring a large order for Boeing’s European rival, Airbus.

After the initial curbs, at least three Boeing aircraft were sent back from China to the U.S.. The commencement of deliveries will help the planemaker improve its balance sheet as it aims to cut losses.

While the overall sentiment about the stock was bearish, Monday’s news garnered some early bullish chatter.

Senior officials from the United States and China are scheduled to begin a new round of talks on Monday in London, focusing on rare earth magnets.

Boeing stock has gained 18.2% this year, amid several large orders for the company as countries looked to cut their trade deficit with the U.S.

Also See: Rare Earth Exports Take Center Stage In Latest US-China Trade Talks In London

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