US-China face-to-face talk resumes

With the focus on monetary policy hardly having passed, US-China trade updates were seen swaying markets in the overnight session.

Source: Bloomberg

Wall Street saw early gains, built on the back of the latest Fed cut, wiped into the latter half of the session with concerning news with regards to US-China trade. To some extent the latest updates on US-China officials having met face-to-face in Washington tilts the sentiment back to the positive, one to aid Asia markets, but it once again highlights the fragility of the market sentiment on this biggest risk that persists. The latest meeting is expected to set the stage for the high-level meeting in early October which may keep the market going. Likewise, with regards to the likes of the Wall Street and the S&P 500 index, it may serve as a short-term support for prices. That said, having had past experiences watching things turn sour quickly, managing this risk will be important heading towards that early October meeting expected between key trade negotiators.

Source: IG Charts

Bank of Japan consider October easing

We have seen the series of central bank meeting conclusions this week with mostly rate cuts seen or an apparent easing bias. While we had highlighted the Fed’s mixed outlook on interest rates that deviates significantly from the market’s view, the Bank of Japan (BoJ) had been another interesting one to note. The yen strengthened post meeting with a portion of the market seemingly disappointed with the lack of action in the September meeting, though that had been the consensus. The BoJ did however caveat an extensive review on the ‘economic and price developments’ at the October meeting that prompted the potential easing measures to unfold then. With the meeting lying at the end of the month in October, further insights into the US-China trade relations and thus the yen trajectory is also expected to play a part in whether the BoJ will move and what they will use given their limited toolbox.

This morning had also seen Japan’s August core CPI data slowing further to 0.5% month-on-month, the weakest growth rate since July 2017, though within the market’s expectation. Fort the rest of the day, China’s loan prime rate will be one to watch on the extent of the decline in addition to a series of Fed speakers. Eurozone’s September consumer confidence will also be expected in the day.

Yesterday: S&P 500 +0.02%; DJIA -0.19%; DAX +0.55%; FTSE +0.58


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 30
  • The only provider to offer 24-hour pricing

See opportunity on an index?

Don’t miss your chance. Try a risk-free trade in your demo account, and find out whether your hunch could have paid off.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Get fixed spreads from 1 point on FTSE 100 and Germany 30
  • Trade more 24-hour indices than any other provider – 26 in total
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Bid
Offer
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.