What a difference a weekend makes. Chinese Premier Li Keqiang promised China would open up further and eliminate technology transfers along with balanced trade. Signs of a concession towards the US sparked a massive reversal in risk trades and the biggest one-day rally in US equities since 2015.
The S&P 500 gained 70 points, or 2.7%, to 2658 in a jump from the 200-day moving average. FX wasn't quite as euphoric as yen crosses climbed around 1% but they weren't as negative on the way down either. The drop and reversal underscores how sensitive the market is to trade at the moment. It's overshadowing nearly everything else.
Despite a diminished threat of a trade war, the US dollar still suffered on most fronts. Technically, the euro broke above the March high to the best level since February 15. Cable climbed to the highest since February 1 and is approaching a cluster or resistance around the 2018 highs.
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