US equities rallied yesterday, ahead of the signing of a “Phase One” deal between the US and China, with the S&P 500 and DJIA hitting new all-time highs. That said, at the time of the signing, we saw a small “sell the fact” reaction, as this may have been largely priced in. Now, focus will turn to talks surrounding the second phase, with the US Vice President saying that the discussions have already begun.
Investors Stay Cautiously Optimistic After the US-China “Phase One” Deal
The dollar traded lower against all but one of the other G10 currencies yesterday. It underperformed the most against NZD and CHF, while the currency that failed to eke out any gains against the greenback was JPY, with USD/JPY found virtually unchanged this morning.
The performance in the FX world does not paint a clear picture with regards to the broader market sentiment. The weakening of the yen points to increased risk appetite, but...
Read the full financial markets daily report on JFD Research.