Global equities jumped this morning while safe haven assets like the Japanese Yen, Gold and 10-Years U.S. Treasuries retreated as investors regained their appetite for risk assets. This shift took place after China’s announcement that trade talks with the U.S. will continue in early October in Washington. This followed a call between China Vice Premier Liu He, U.S. Treasury Secretary Mnuchin and Trade Representative Lighthizer that “went well” according to Beijing. All European stocks are trading higher this morning with Carmakers registering the best performance, following the rally observed in Asia overnight, as stock traders welcomed the news
Also boosting sentiment, the last Fed’s Beige Book showed U.S. businesses remained optimistic about their near-term outlook as the U.S. economy is still expanding at a modest pace.
The only index trading lower today is the FTSE-100 in London, due to political uncertainty after Prime Minister Boris Johnson was defeated by Parliament in a bid to call for early general election prior to the Article-50 deadline in October. Investors’ focus is now likely to shift to U.S. data, as tomorrow’s job report and unemployment rate loom, as well as Jerome Powell’s speech, which may provide traders more clues about the Fed’s next move on monetary policy.
