Will optimism fuel risk appetite?

11 March, 2019

Will optimism over US-China trade negotiations fuel risk appetite?

Financial market sentiment has been evidently jabbed in the past couple of trading sessions by concerns over the downbeat tone delivered by the European Central Bank (ECB) and another round of economic data releases clearly pointing out that the global economy is facing downside risks. 

Therefore, investors really need an air of positive news to inspire some risk appetite back into valuations and there is no better potential catalyst for such a change in sentiment than stronger optimism coming out of the ongoing US-China discussions over a host of different issues. 

Improved bilateral relations between the United States and China is in clear demand right now from investors and headlines, such as the most recent one that they have reached a consensus over many vital issues is extremely positive news for financial market sentiment. 

This is now likely going to be the major theme heading into the next trading week and will hopefully help overshadow what was a past week of resumed concerns over the global economy. 

Investors might not “buy” into this headline right away because quite a lot of US-China optimism has been priced into the market over the past couple of weeks, but optimism is still very much needed for risk appetite to take “the next step” as we conclude Q1. Optimism ultimately concluding in a hopeful signing summit in the next couple of months is the potential trigger for a rally in global stocks, emerging markets and the next round of momentum for emerging market currencies.


Source link  
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...

Gold pounce on Fed's easing bias

Asian currencies are now climbing higher after the Dollar index (DXY) fell below the psychological 97 mark during the Asian session, as the...

Emerging markets to jump

A collective sigh of relief has roared across financial markets after the Federal Reserve confirmed market expectations of the...


Markets turn defensive

The mood across financial markets is set to remain cautious as investors find comfort on the sidelines ahead of several major central bank decisions over the coming days...

Oil rebounds on geopolitical tensions

It has been a rollercoaster trading week for oil markets as investors tussled with conflicting fundamental themes pulling and tugging at the...

Markets hit by caution ahead of US retail sales data

The mood across financial markets was cautious this morning as rising geopolitical tensions in the Middle East and persistent...


Gold sinks to fresh weekly lows

Gold stumbled to a fresh one-week low on Tuesday as cautious optimism over global trade developments boosted risk sentiment and dampened...

Global trade developments drag on

Asian equities were mostly lower on Wednesday morning as risk sentiment swung back to caution on persistent US-China trade tensions...

Stocks fight for gains

Asian stocks advanced on Tuesday, while US and European equities are poised for more gains, even as heightened trade tensions and persistent concerns over global growth test risk sentiment.

  


Share it on:   or