Fed Powell: Fed will act as appropriate to sustain expansion
US Secretary Mnuchin will see Chinese delegation at G20
Mexican foreign Minister sees 80% odds to find solution on tariffs
Global Equities rebounded after encouraging comments on trade from Secretary Mnuchin and Mexican Foreign Minister. As investor as still discounting that a resolution between US and China will not happen at G20, those comments from Mexico reassure automakers and chip manufacturers, given some of the large-cap car makers factory presence in the region - Volkswagen, Ford, FCA, Audi, Kia, Honda, Mazda. To boost sentiment, we also had comments from Fed Chair Powell which were digested as more supportive for the economy and very much in line with recent wording.
US Equity Indices rose amid renewed hopes on trade. The SP500 reclaimed and traded back above the 200 DMA paring back yesterday tech-led rout sparked by antitrust concerns. European indices also climbed after positive comments form Mexican officials.
The FX space traded choppy ahead of key Central Bank meetings this month. The USD Dollar index was softer above the 97 level. EUR was contained by the 1.1300 level to the upside. The rest of the G10 US counterparts traded flat at the EU close.
Wti Crude Oil was also lacked clear direction despite USD weakness and the slight rebound in stocks. Gold traded flat at the EU close firm above the 1320 level
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