Markets stay subdued in the aftermath of the trade deal

The equity futures in America have climbed this Thursday and the shares in Europe have seen a fluctuation amidst the signing of the trade deal between United States and China which is an event that has helped in the driving of the global stocks to the highs of all time. The bonds have drifted and dollar on the other hand remained steady.

The contracts for all the three main gauges in America have pointed to a lot more gains after a record day was hit earlier by the Wall Street. Nasdaq 100 saw a better day after the Taiwan Semiconductor had projected their revenue for the quarter as being a long way above the estimates of the analysts.

The signing formally of the deal between the two biggest economies in the world has put the war on hold as per a lot of the investors. There is an assumption that it is going to last and the traders will be looking for a lot of new catalysts specially in the data coming out of the economies and the earnings season ramping up. Among the names which are going to report is Morgan Stanley.

A strategist has said that with the given amount of the speculations by the market and the commentary of the officials before the signing took place on Wednesday, it is not surprising that the markets have not been very strong in their rally during the final signing. The markets are going to in all likelihood continue pricing in an elevated level of risk premium which is going to probably be a source for causing volatility through the course of the year 2020.

About: Akash Gokhe