Sentiment has been given an extra boost in Asia today, on reports that US and China are set to resume trade talks In October. Sentiment had already been lifted by stronger China Service PMI yesterday, along with news Hong Kong’s PM was to officially withdraw the extradition treaty. But it was today’s trade-war breakthrough which made a notable mark on asset prices.
What helps the report carry more weight is the phone call made to agree to the talks has been confirmed by both US and Chinese spokesman. This may seem like an obvious requirement, but it should be remembered that President Trump took some flak for claiming trade talks were going well, over a phone call China claim never existed. But only after the markets rallied and quickly reversed course once China denied the call.
So with index futures trading higher and USD under pressure, markets may have hit an inflection point. At least over the near-term.
For today’s video, we look at key levels on the S&P500 E-mini’s, SPX sentiment and DAX.