Markets are paralysed ahead of the Trump-Xi meeting tomorrow
And besides month-end and quarter-end rebalancing flows, I would not expect traders and investors to bet on any solid outcome ahead of trade talks tomorrow. The yen and swissie are holding slight gains but nothing overwhelming as cautious sentiment is observed before the Trump-Xi meeting.
Other major currencies are little changed against the dollar as markets are largely steady for the time being. Asian equities may be trading lower but US futures are basically at flat levels and Treasury yields are displaying similar sentiment to begin the session.
It's all about the countdown to tomorrow's meeting now so expect markets to remain in a more tepid mood until the end of the day/week. But as mentioned above, month-end and quarter-end flows may yet still muddy the picture later on in the day.
The S&P 500 is up by 6.3% for the month of June but that belies the risks faced by investors heading into the weekend. Just be aware of that in case US stocks see a bit of a correction before we wrap things up.
