News that Chinese and US negotiators will be meeting in Washington early next month has further boosted the recent risk on sentiment and we have stocks soaring and the Dollar slipping. EM currencies have bounced back sharply with the Turkish Lira firming by 4% and the Rand by around 2% yesterday. The Rand is currently trading at 14.7600 while the Chinese Yuan has firmed to 7.1350.
The news that the controversial extradition bill which set off the protests in Hong Kong is to be withdrawn has also cheered markets. The UK parliaments blocking of a no deal Brexit as well as the rejection of a snap election which could force Boris Johnson to seek a Brexit delay from the EU has seen both the Pound and Euro strengthen against the Dollar. We have the Pound at 1.2242 and the Euro at 1.1030 this morning.
The Dow closed up 0.91%, the S&P up 1.08% and Nasdaq up 1.30% yesterday and the futures are trading even higher this morning. Chinese and Japanese stocks have closed higher on the trade talk news with the Nikkei up 2.30% and the Shanghai index up 1.56%. The JSE gained 0.30% yesterday.
Precious metals prices remain elevated with Platinum quoted at $991.50 and Palladium at $1 561.56.
Gold is surprisingly strong at $1 545.75 given that other safe haven assets have been sold off.