Markets stay more optimistic in the European morning

Author: Justin Low | Category: News

The more positive risk mood is carrying on

E-minis 05-09
ForexLive
USGG30YR
Equities are holding decent gains on the session while Treasury yields are still sitting near the highs for the day currently in European morning trade. US futures are up by 0.7% while European indices are gaining around 0.6% - 0.8% across the board at the moment.

Meanwhile, US 10-year yields are up by nearly 5 bps above 1.51% and 30-year yields are up by over 4 bps sitting above the 2.00% threshold once again.

As such, the yen and franc are weighed lower on the session but USD/JPY is continuing to sit around 106.50 levels since the start of the European morning. The likes of the aussie and kiwi are also keeping gains with the latter even moving higher during the session.

That's quite a bit of optimism on just phone conversations between US and China working towards a meeting in October. Am I the only one feeling skeptical here?

I can't stress enough how many times we've been down this road before only to end up in disappointment but this is still a market looking to buy on dips. I find that astonishing in light of the weak economic data we have seen throughout the week all over the place.

And guess what? A US-China trade meeting in Washington isn't going to change the trajectory of where the global economy is headed.

Trade optimism is great and it allows for different trading opportunities in markets but I'm still going to sit in the cautious camp here, being wary of how much the optimism can go.

I reckon it will only be a matter of time again before markets have to deal with the jarring reality that more US-China trade talks that don't lead to any deal isn't going to help the global economy whatsoever.

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