Risk appetite is returning to markets

10.04.2018 / 09:57

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Risk appetite showed signs of returning to markets as China’s President Xi Jinping struck a conciliatory tone, lifting stocks in Asia and U.S. equity index futures, while safe haven assets retreated.

Shares from Sydney to Hong Kong rose alongside oil and metals and Treasuries extended declines with gold and the yen.

Xi’s speech sends a positive signal to the market since he backs globalization and the opening up of China’s market. Investors were very worried about trade disputes, while his speech calms the nerves a lot. The concern about trade disputes in the near-term are still here however, since what Xi pictures is a very long-term picture.

Political risk also took another turn in the White House overnight, as Special Counsel Robert Mueller’s investigation of Russian meddling in the U.S. election resurfaced. Despite gains in technology stocks driving U.S. equities higher on Monday, the S&P 500 Index erased about two-thirds of its advance amid news the FBI conducted a raid at the office of President Donald Trump’s longtime lawyer, Michael Cohen.

Source: Bloomberg Pro Terminal

Trader Georgi Bozhidarov

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Risk appetite is returning to markets

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