So, what’s the deal?
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Bloomberg
Markets continue their rebound following the U.S.-China trade truce, while a portion of America’s yield curve inverts for the first time in a decade. Here are some of the things people in markets are talking about.
Markets Rebound Continues
Stocks rallied after the U.S. and China declared a truce in their trade war, while the dollar weakened and oil gained. The benchmark S&P 500 Index jumped more than 1 percent, building on gains posted during the biggest weekly increase in almost seven years, after leaders of (...)
One of the most pointed comments on what the Xi-Trump tango in Argentina means for markets came from AXA Investment Managers Head of Asia, Mark Tinker. He told us on Bloomberg TV that investors will likely no longer go shorter than they were into the end of the year. He described the truce as a “removal of a negative rather than a huge positive.” It goes some way in saying that moves, especially in the currency and commodities markets, should not be interpreted as investors putting the issue to bed. It would be the same as you believing my promise to ditch all the annoying habits I've had since kindergarten in three months — it's not going to happen. Some of the issues under the microscope, such as intellectual property theft, market access and forced technology transfers, have been around since analysts first included China in their economic models. So don't expect the tariff issue to go away. Think of it as the insurance that keeps both sides at the negotiating table.
The next thing I'll be watching will be December trade figures across Asia Pacific, due in January.
There's been a massive amount of frontloading activity ahead of the New Year. If the frontloading persists despite the truce deadline being pushed back, that's probably a sign few think it will last.
