Trump’s comments about trade talks restart met with careful optimism   

27 August 2019 : Asian stocks followed their US counterparts higher, as markets gave a measured response to US President Donald Trump’s latest comment about US-China trade talks restarting. The Dollar index is testing the 98 psychological level at the time of writing, with G10 and Asian currencies offering a mixed bag of results against the Greenback.

Although Trump’s recent comments allow investors to cling on to hope that a US-China trade deal is still possible, it remains to be seen whether or not Trump’s comments prove to be green shoots or a false dawn over the prospects of a meaningful US-China trade deal. Despite the seemingly hopeful commentary, investors are well aware that multiple rounds of trade talks have only led to the current dismal situation, whereby repeated tariff threats have become the norm.

Global investors have had their emotions toyed with amidst the ever-shifting sands of the US-China trade conflict. Market nerves have been left raw, with the delicate sentiment prompting knee-jerk reactions to every nuance pertaining to the highly unpredictable US-China trade impasse. Until there are clear signs of progress in US-China trade negotiations, risk-aversion will continue to dominate market sentiment, with safe haven assets maintaining their appeal among investors.

Source: FXTM Market Analyst Han Tan

Reporting for EasyKobo on Tuesday , 27 August 2019 in Lagos, Nigeria

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