Equities continue to rally with Nikkei futures up in eight straight sessions as macro numbers are stabilizing and no longer surprising to the downside. A weaker USD has also lifted financial conditions, especially in emerging markets, and with it lifted rates globally. The next week is going to be crucial for risk sentiment with ECB meeting today and FOMC next week. Depending on the signals from central banks we could get a hangover period, but if we get the right amount of accommodative policy measures then we could be in for a longer rally in equities.
Trump tweet sparks trade deal hope
In a return of gesture, Trump tweeted that the tariffs increase on Chinese goods set for October 1 would be delayed to October 15, so it does not collide with the 70th anniversary of the Chinese Communist Party. Trump’s tweet has fueled risk sentiment sending the S&P 500 above the 3,000 level and close to all-time highs.