Equities extend gains in the European morning


The DAX is currently up by 1.4%

Equity investors continue to be unperturbed by a possible failure in trade talks as they continue to hold a more optimistic view going into the final day of meetings in Washington.

The one to watch out for will be Trump’s meeting with Chinese vice premier Liu He but the moves we’re seeing in equities suggest that investors are feeling more upbeat that we will see some form of partial trade deal being struck before the weekend.

At the same time, bond yields have normalised a little but are still slightly weaker on the session. That is still hinting at mixed sentiment among market participants as we await further developments on the trade front.

I want to say that equity investors are getting too ahead of themselves but they’ll be vindicated if we do see a partial trade deal come to fruition. That said, if talks turn sour, it’s going to be a rather painful drop considering how much hopeful optimism is priced in currently.

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