Positive signs in the US-China trade wars – Danske Bank

Sandeep Kanihama FXStreet Contributor

Analysts at Danske Bank explain that while S&P 500 initially moved higher yesterday on the back of positive signs in the US-China trade wars , where it seems the two countries are trying to restart more real and constructive negotiations, the index ended 0.4% lower, as sentiment soured during the day.

Key Quotes

“This also led to a collapse in oil prices . A higher USD and weak equity market has certainly played a role in the sell-off this week, but more importantly, oil supply fundamentals have flipped from concerns over the effect of Iran sanctions to talk about supply surplus next year. OPEC+ talk about curbing output next year has done little to support prices.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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