Will the ceasefire change the game?

3 December, 2018

Appetite towards investors taking on risk, including stocks and emerging markets should be in line for a lift higher as trading resumes after both China and the United States agreed to suspend new trade tariffs during their meeting following the G-20.

It will still be important for investors to stay very close to this development and also not get too carried away. The mutual agreement to not raise trade tariffs further is essentially a ceasefire until the new year and indicates that negotiations will remain ongoing over the interim, it doesn’t reverse the tariffs and tensions that have dominated global market sentiment throughout the majority of this year.

Emerging market assets like the Chinese Yuan might benefit over the interim from the headline that trade tariffs will not get any worse for a while, but investors essentially need guidance that there is an eventual end-game to these prolonged tensions to go “all in” on increased risk appetite.


Source link  
Trade tensions reach crescendo

Investors are struggling to shake off the pounding hangover from yesterday's dramatic global selloff as US-China trade tensions took...

Dollar humbled by disappointing data

The Dollar was close to surrendering all of Thursday's gains after US Manufacturing PMI figures missed market expectations by falling...

Pound takes all the heat

The Euro enjoyed some stability today as investors directed most of their attention towards the battered Pound. With the Euro appreciating against every...


Pound slumps to new two-year low

It has been under a week since Boris Johnson became the new UK Prime Minister and already the British Pound is sinking deeper into...

Gold searches for a fresh catalyst

Gold struggled for direction on Monday thanks to a miscommunication about monetary policy from the Federal Reserve last Friday.

Sterling shaky ahead of new UK PM announcement

The British Pound is shaky this morning as anticipation mounts ahead of the announcement of the next Tory leader and Prime...


Markets await Powell perk up

Asian stocks are eking out slight gains after the S&P 500 continued easing off its record high, as investors await fresh reasons to...

Trade truce paints illusion of market stability

Some semblance of stability returned to financial markets yesterday as investors breathed a collective sigh of relief after US-China trade...

Global stocks turbocharged by hopes

Global equity bulls are continuing their unstoppable momentum into the conclusion of the trading week, as well-orchestrated, cautious remarks...

  


Share it on:   or