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The week continued being volatile yesterday following a number of impactful events affecting market sentiment.
For one, Trump indicated that a trade deal with China is very likely now, driving flows into equities and away from safe havens.
In Europe on the other hand, the European Commission granted another extension request for Brexit, removing recent gains from gold.
Meanwhile, traders’ expectations for another Fed cut are increasing.
Equities Hit Record Highs Following Trump Comments
On Tuesday night Trump said that “Washington was ahead of schedule to sign a very big portion” of a potential trade deal with China.
Stocks were upbeat on hopes for trade progress and also on the back of renewed Fed sentiment. The CME FedWatch tool shows market participants expect another cut with a 95% probability.
In addition, markets moved higher on good US earnings reports and are expected to be volatile for the rest of the week.
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