Stock markets opened with no clear direction on Tuesday as most benchmarks remain in their consolidation phase following last week’s gains. Market sentiment is still bullish, especially after China Vice Premier Liu He confirmed progress was made during the last trade discussion with the US and that there was a good chance of reaching an agreement during November’s meeting in Chile. On the US side, Donald Trump also confirmed the positive signs and said he was hopeful of an agreement in November, which represents a strong bullish leverage to stocks.
With risks related to the trade war fading away, investors have switched their focus back to data and especially to corporate earnings which will provide them with more clues on how companies have dealt with the negative impacts of the US-China trade disputes in Q3. The current earning season shows good results so far, which indicates there may be enough space for an extended rally on stocks before Christmas if the current risk-on trading stance continues.
