Bassanese Bites: $A heading to US62c – November 11 2019
Global equities continued to rally last week, buoyed by ongoing hopes that the US and China will eventually conclude a trade deal – despite some uncertainty over whether existing tariffs will be rolled back or not. Despite his bluster that “China wants a trade deal more than I do”, markets sense that Trump is likely quite keen to call a truce on what is becoming a serious US economic risk heading into the 2020 election year.
In other news, global data generally held up well last week, with various measures of US service sector activity remaining in expansion territory. Even in Europe, retail sales and German factory orders were a bit better than expected in September, though German industrial production remained a bit weaker than expected.