A 90-day trade truce and major tariff cuts between the US and China lifted market sentiment on Monday, pushing the US Dollar and risk assets higher.
US-China trade talks in Geneva have raised hopes of resolving differences, boosting market optimism and supporting riskier assets.
Trading sentiment softened early Friday as market participants reassessed the positive momentum from the UK-US trade talks and the upcoming US-China meeting.
Market sentiment remains mildly positive early Thursday, mirroring Wall Street's gains, as traders await major trade deal news from Trump and developments in US-China talks.
Asian markets opened on a positive note Wednesday after China announced a series of rate cuts and policy measures aimed at supporting its economy.
Markets kicked off the week on a quiet note, with holidays in Asia and the UK, mixed US data, and trade jitters keeping volatility low.
Markets rallied last Friday on hopes for a US-China trade deal and upbeat US job data.
Early signs of renewed US-China trade talks lifted market sentiment on Friday, helping risk assets recover and easing pressure on the US Dollar.
The market sees limited momentum early Thursday due to Labor Day holidays in Europe and China.
Momentum slows midweek as month-end flows and caution ahead of major US and European data weigh on risk appetite.
Market optimism over Trump’s auto tariff relief faded quickly as China, the EU, UK, and Japan criticized US trade policies and pushed for broader deals.
Early Monday sees traders stepping back as fears over US-China trade talks and Ukraine ceasefire negotiations resurface.
