Risk on mood before the holidays. China removes tariffs on 850 goods

Trade optimism has boosted sentiment after Donald Trump on Friday said he had a "very good" conversation with Chinese President Xi. This indicates that the two countries continue to work on finalizing Phase I. Trump also confirmed China's intentions to buy "large quantities" of agricultural products from the US, and the formal signing of the deal is about to happen. During the Asian session, China announced that it would reduce tariffs on 850 types of US products from January 1, 2020. From July 1, the Chinese will start buying technology products.

Considering more than the good development of the trade front and the gradual withdrawal from the trenches, we believe that today the European session will start with a positive start. Today, we will expect increases before any gain, which is normal at this time of year.

Early indications of European futures point to a stronger opening, with risky assets leading. The US dollar remains weak, the euro and the pound are advancing slightly, the yen is inferior, as is gold. Oil also reports declines as the new day begins, the Swiss franc also retreats. The Asian session started early, but at a very slow pace. Keep in mind that liquidity is shrinking dramatically, with market anomalies expected. Investors are already withdrawing from the markets.

The economic calendar for Europe is missing today, but later we have the foundation for Canada and the US. Against this background, we will expect a relatively calm and positive European session.

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