December 5, 2019
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During this week, financial markets fluctuated sharply with US-China trade negotiations as the key driver
Trade developments swing from pessimistic to optimistic. Market risk sentiment improved amid speculation that China and the US might be closer to a trade deal, but it didn’t fully recover from the recent flood of negative trade news.
Investors were risk-averse as US trade frictions with the rest of the world keep mounting.
The mood on financial markets remained positive this week on the back of brighter prospects of a trade deal. Although the ratification of the Hong Kong pro-democracy bill in the US slightly dented market’s risk-on mood towards the end of the week, both positive economic data helped to support markets.
Today’s session was quiet as US stock and bond markets remained closed due to the Thanksgiving holiday. Nonetheless, market risk sentiment worsened after the pro-democracy Hong Kong bills became law with the US President’s ratification.
Market risk sentiment improved modestly amid positive trade headlines and strong US activity data.
Market risk sentiment recovered modestly on positive trade headlines. China said it will increase penalties for intellectual property violations, while Chinese media said both countries are very close to the phase one trade deal.