16/08/2018 – 16:00: After the „Risk-Off“ trading yesterday as equities, commodities, Euro & Co. recorded significant price declines on, today the picture clears up again.
In the early hours of the morning, news agencies were tickled by the news that a Chinese delegation would travel to the US at the end of August to resume the dialogue on the trade restrictions, imposed by the Trump government on Chinese goods and services. The invitation was issued on the initiative of the US after the trade talks were abandoned without any result about two months ago. The markets used this message to switch back to “Risk-On” mode.
Equities and commodities rose accordingly, and the Euro recovered from the sharp losses of recent days against the US-Dollar. However, the risk markets are coming out of an oversold situation and so today’s rally may seem to overlook the fact that the talks are not at the highest level of government, but at best at the lower level of government.
The aim of the talks is to find out whether there is a need for discussion at the highest level of government. Let alone the content, because there are concrete things about the possible timeframe so far. So, we are still left with pure hope – and this could soon be disappointed again if the talks are repeated – to prove fruitless. Then it’s gonna be “Risk-Off” again.
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