FxWirePro: Positive updates from Sino-American trade negotiations boost risky assets

Positive news in Sino-American trade negotiations are boosting the risky assets at the start of the week,

• Comments from China, earlier in the day, strongly suggests that positive breakthroughs are being made at the negotiating table, in some of the most contentious issues such as the intellectual property protection, which have so far been a drag to the negotiations.
• Wall Street Journal (WSJ) reported earlier in the day that the United States and China have not only inched closer to an agreement but talks are in the final stages of completing an agreement. According to reports, both sides have agreed to work together in removing tariffs and non-tariffs barrier.
• The spokesman for China’s National People’s Congress (NPC) commented that the negotiations are moving in the right direction as China seeks cooperation with the United States while safeguarding its sovereignty.

This piece of an update has been positive for the risky assets to start the week,

• China’s benchmark Shanghai Composite is extending its ongoing rallies, up 2.7 percent so far today.
• Hong Kong’s benchmark stock index Hang Seng is up 1.2 percent.
• Japanese Nikkei 225 is up 1.1 percent.
• S&P500 future is also higher on the news (+0.42 percent).
• Commodities are enjoying a rally too, with Copper up 0.6 percent.
• Chinese yuan is higher against the USD, trading at 6.69 per USD (+0.15 percent).
• On the other hand, safe haven assets like yen (-0.14 percent), Swiss franc (-0.07 percent), and USD (-0.03 percent) are moving lower.