Asia Pacific Market Open – US China Trade Talks, US Shutdown, Crude Oil, S&P 500, Canadian Dollar
- US China positive trade talk bets pushed S&P 500[1] higher as market mood continued improving
- Sentiment-linked crude oil[2] prices entered longest winning streak in about 8 months as CAD[3] rose
- All eyes on Donald Trump speech as trade talks enter into a third day, will stock gains continue?
We recently released our Q1 forecasts for currencies like the US Dollar in the DailyFX Trading Guides page[4]
The S&P 500 entered its third consecutive winning streak which is the best spree since late November 2018. This has brought gains of around 10% since it bottomed in December. The backdrop for Tuesday’s optimism seemed to have stemmed from bets of positive outcomes on US China trade talks which are being extended into a third day.
Earlier in the day, US President Donald Trump dropped hints that negotiations are going along nicely, adding that he wants a deal soon to boost the markets. The general improvement in market mood led to gains in Asia, European and US benchmark stock indexes. Sentiment-linked crude oil prices rose for a 6th day, adding to its best climbing streak in about 8 months.
Crude oil also received a boost later in the day when the American Petroleum Institute reported that stockpiles contracted about 6.13m bbl last week. As a result, the Canadian Dollar was one of the best performing majors as it closely followed the commodity. Canadian government bond yields also rallied, perhaps reflecting fading
