In the United States, the stock markets are still a little rattled. There is a concern of a low market liquidity, which has persisted for over a week. However, Fed Chairman Jerome Powell did not address it at the most recent policy meeting. Investors are still hoping that the Fed will take action to increase liquidity in the near future and alleviate the strain upon equity markets.
Meanwhile, there has also been positive news regarding the trade negotiations between the United States and China. The countries are set to resume trade talks next month, but lower-rank officials have already begun meeting up to discuss ways of resolving the trade dispute. This is making the market optimistic and pushing investors to choose higher-risk assets. As a result, the US dollar, the Japanese yen, the Swiss franc, and gold have all weakened today.
More optimism is also coming from Europe and the United Kingdom. The President of the European Commission, Jean-Claude Juncker, shared that he believes it is possible to reach a deal with the UK before Halloween. Boris Johnson’s cabinet is currently engaged in talks with the EU. Juncker said that as long as there is a plan for Ireland that the EU can back, a deal is possible. The British pound strengthened after this news.
