S&P To Open At New All Time High Amid Easing Trade War Tensions, Stable Yuan, Broad Sunlit Uplands etc.
From ZeroHedge:
It has been a quiet overnight session as UK markets are closed for
holiday, with last Friday's post-Jackson Hole surge that sent the
S&P to a new all time high pushed risk momentum higher, and sent
world stock markets to their highest level in more than two weeks on
Monday as reassuring comments from Fed chief Powell, an easing in trade
war jitters and a bid by China’s central bank to stabilize the yuan
lifted risk appetite.
Still, the yuan failed to hold onto gains as the market took into
account the possibility of an escalation in the U.S.-China trade war,
while the peso rose as the U.S. and Mexico are said to be close to
resolving their Nafta differences. President Trump tweeted that a trade
deal with Mexico could be reached soon, while there were separate
reports which noted that US and Mexico were said to be poised for an
agreement on NAFTA as soon as this Monday. In addition, there were
comments from Mexico Economy Minister Guajardo that sides were
practically in the final hours of negotiations. Conversely, Mexico
Foreign Minister Videgaray said work on NAFTA with US has not finished
and there had been source reports on Friday that Mexican President Elect
Lopez Obrador’s stance on oil was said to be keeping US and Mexico from
securing a NAFTA deal.
Comments from Powell at the Jackson Hole symposium on Friday
affirming that the U.S. central bank was sticking with its strategy of
gradual rate hikes to protect economic growth sparked a rally in stocks
that gathered pace as a new week swung into gear. Helping to brighten
the mood, U.S. and Mexican trade negotiators were reprotedly on the
verge of reaching a deal in bilateral trade agreement as part of NAFTA,
with Mexican Economy Minister Ildefonso Guajardo saying on Sunday talks
have “continued to make progress”. The talks will resume on Monday and a
positive outcome is expected to ease concerns about an escalation in
global trade tensions....MORE
