Market sentiment stayed negative early Wednesday as Asian equities saw their steepest daily drop in six months, following Wall Street’s slump. Key drivers included concerns over the U.S. Federal Reserve’s (Fed) possible pause on rate cuts, U.S.-driven global trade tensions, and renewed geopolitical risks amid a quiet economic calendar.
The risk market remained sluggish early Tuesday as traders struggled to maintain optimism over U.S.-China trade developments amid mixed geopolitical news and concerns about the Federal Reserve’s (Fed) decision to pause rate cuts in December.
The market’s risk tone stayed slightly positive early Monday, as optimism surrounding a potential United States–China trade deal balanced easing worries over the Federal Reserve’s December rate-cut outlook. Softer Russia–Ukraine tensions, mixed headlines from Gaza and Venezuela, and a public holiday in Japan also shaped early sentiment.
The risk sentiment remains mixed early Friday after a weak session, as traders reassess optimism over the U.S.-China trade deal “framework” following the first face-to-face meeting between U.S. President Donald Trump and Chinese President Xi Jinping since 2019. The meeting ended positively, boosting hopes for a more stable trade relationship.
Market sentiment held firm early Thursday after early reports from the much-anticipated trade talks between U.S. President Donald Trump and Chinese President Xi Jinping signaled progress. Optimism was further supported by positive comments from China’s Premier Li Qiang, who emphasized new stimulus measures to stabilize growth.
Traders turned cautious on Wednesday after a strong previous day, as they focused on key events like the U.S. Federal Reserve's (Fed) monetary policy decision and the Bank of Canada’s (BoC) interest rate decision. This caution was compounded by geopolitical risks in the Middle East and mixed U.S. data, weighing on earlier optimism.
Market sentiment remained strong on Tuesday, continuing the optimism from the start of the week as traders reacted positively to growing expectations of trade deals between the U.S. and major economies, particularly China and Japan.
Market sentiment remains positive early on Monday as traders prepare for a busy week, including major events such as US-China trade talks, Federal Open Market Committee (FOMC) meeting, Bank of Canada (BoC) meeting, Bank of Japan (BoJ) meeting, European Central Bank (ECB) decision, and Australian Consumer Price Index (CPI) release.
Risk sentiment improved on Monday and stayed firm into early Tuesday as traders grew hopeful about progress on the U.S. government shutdown and a possible easing of U.S.-China trade tensions ahead of a scheduled meeting in Malaysia.
Risk sentiment struggles to maintain previous optimism as fresh developments from the U.S., China, and Beijing, along with Trump’s actions on Ukraine and Russia, challenge market confidence. This, coupled with headlines concerning the Middle East and a cautious mood ahead of the U.S. Consumer Price Index (CPI) release, weighs on sentiment.
Market sentiment is mixed as a lack of recent U.S. economic data raises doubts about the health of the world’s largest economy. Policymakers are attempting to mask economic pain, but the uncertainty is compounded by dovish Federal Reserve (Fed) expectations and mixed economic indicators.
Market sentiment improved slightly after traders digested a wave of news from Wednesday and early Thursday. Positive drivers included China–U.S. tensions, China’s stimulus measures, and dovish central bank comments.
Market sentiment remains fragile as concerns intensify around the U.S.-China trade deal. Tensions escalated after U.S. President Donald Trump imposed 100% tariffs on Chinese goods. In response, China introduced a $1.7 million “special port fee” on a U.S.-linked ship and reportedly tightened restrictions on rare earth metal exports.
