Conciliatory Chinese overtures ease US trade tensions
The US Dollar & the Dow Jones had mixed fortunes from yesterdays conciliatory message from China with regard to escalating trade tensions between the two countries, with the Dow rising by 670 points. The US Dollar managed to lose ground against Sterling, Euro, Aussie, & the Swiss Franc, but gaining against the Yen & Canadian Dollar. This does very little to clarify the picture. In the equity markets, the threat to the downside remains very real. Whilst the overnight recovery in global equities brought relief to investors, it remains no more substantial than a house of cards. We are still considerably below the years high, and as previously indicated here, pullbacks represent a buying opportunity for those who have the liquidity to play, and there is still money to be made trading against a nervous market by buying the dips & cashing in on the rallies.