US CFD indexes at 5-week highs after trade talk news
U.S. CFD indexes have been pushed to new 5-week highs in today’s session after positive trade news lifted already buoyant risk markets. Dow futures lifted 294 points after positive trade talk news hit the markets.
China’s Commerce Ministry issued a statement saying that Liu He, China’s top negotiator on trade, spoke with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. – CNBC
The two sides agreed to hold another round of trade negotiations in Washington, D.C., towards the beginning of next month, and consultations will be made in mid-September in preparation for the meeting, the statement said. – CNBC
“Both sides agreed they should work together and take practical actions to create favourable conditions for the negotiations,” according to a CNBC translation of the statement. – CNBC
Positive trade news has given the U.S. CFDs a strong boost in today’s session the US30 is trading 277 pts higher, the SPX500 29.37 pts higher, and the NDX100 has gained 101 points. Another key from today’s trade is that all three have also broken out of consolidation patterns and hit new 5-week highs. Since these moves are solely trade update based for now we would like to see new higher lows form above the breakout to confirm that these are true breakouts. Just take a look at the USDCAD D1 this week to see how quickly breakouts can fade! The worry here is that any negative turn in the trade negotiations could produce a sharp turn in sentiment.