Markets Rally As China and the US Go Back to the Table
Rakuten Sec Australia | Aug 17, 2018 12:15AM ET
We got some much needed some positive news for the markets yesterday as China advised that they would be sending delegates to the US to reopen dialogue between the two countries on the continuing trade situation. European markets has a good day on the improved sentiment and the US equity markets rallied strongly with that momentum and a very strong earnings report from Walmart (NYSE:WMT), with the Dow finishing the day up 1.58%. Risk trades caught a break across most products and the dollar slid back from recent highs with the Dxy finishing the day around 96.50.
Emerging market currencies managed to catch a break for the first time this week and we saw rallies against the dollar in most quarters, however many are still trading at vulnerable levels and investors will continue to monitor them closely as we move through the last sessions of the week. There is still strong investor focus on the Turkish Lira which once again managed to rally and has nearly filled in the gap from Monday’s crash. It does feel like there’s more volatility ahead though as the Turkish government continues to try to reassure investors whilst the US administration remains firm and is contemplating further sanctions if the detained US pastor is not released.
Asian equity markets are set to open on the front foot today and investors will be hoping the positive sentiment from the last couple of trading sessions will flow through to the weekend, although they will remain poised for further downside should volatility and a change of opinion come through the market. It’s relatively quiet throughout the day in terms of fundamental data releases and we have to wait until the US session before any tier 1 data is released in the form of the Canadian CPI date. So once again markets will be news and sentiment driven and traders will be focussing on news wires for their next opportunities.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.