Today the markets have received a short-term reassurance about China. Recent trade data indicates that exports from China grew in July to the highest level in five months, showing that the country is doing well, despite the trade war with the United States. Nevertheless, investors still fear that things will get worse when the latest round of tariffs from the United States (announced just last week) kicks in next month.
China has also regulated the yuan and it’s back to levels around 7 yuan per dollar.
The good news from China helped boost the stock markets. Today we see a slight increase in risk appetite, so investors are dropping gold and the Japanese yen and buying equities instead. This has affected the American, European, and Asian stock markets.
Meanwhile, crude oil might also manage to stabilize in price a little. It has dropped 10% in value over the last few weeks, but reportedly Saudi Arabia, the most influential OPEC member state, is considering taking further action to help boost oil prices.
