Investors are cautiously returning to riskier assets, even though concerns about corporate income and global economic growth persist. In addition, hopes for a boost in stimulating the economy by the Chinese authorities offset the concerns about progress in the negotiations between Washington and Beijing.
Futures on the US currency again point to a positive start for Wall Street after the most serious losses in nearly three weeks. The main driving force behind the fall was the Financial Times report that Washington rejected Beijing's proposal to hold preparatory trade talks this week in anticipation of the summit talks scheduled for next week. Despite the fact that the Trump administration later denied this message, the markets suffered serious damage.
In general, the situation remains tense. The weakening of incentives from a number of central banks, the slowdown in China, the wider effects of trade wars and populist rhetoric from politicians keep markets on the edge. The latest figures indicate that 2019 will be difficult for the global economy.
The material has been provided by InstaForex Company - www.instaforex.com