Stocks in Europe continue to trade higher for the second trading session of the week. The risk-on mood persists despite the latest tariff threat from President Trump to Xi Jinping. Washington is looking forward to the next G-20 meeting in Japan to continue trade talks with China, and so do investors. It seems that markets currently price a fair trade resolution between the two blocs, despite the fact that no significant progress has been registered yet and more difficult negotiations remain to be done . Market conditions on stocks and safer assets are likely to get increasingly volatile closer to the Osaka summit as declarations from both governments could have a serious impact on prices.
Photo by Madison Kaminski.
In addition to the US-China trade dispute, investors are awaiting the key US inflation report – the Consumer Price Index, due on Wednesday – to adjust their exposure to stocks. Meanwhile, the Stoxx-50 index is trading toward a 3-week high at 3,400 pts while the next targets can be found towards 3,415-3,420 pts and then 3,440 pts by extension.
