Market Brief: “Risk On” Reigns on US-Sino Trade Optimism


  • FX: The loonie was the strongest major currency on the day (perhaps helped along by end-of-month flows), while the traditional “safe havens” (Swiss franc and Japanese yen) were the weakest.
  • The British pound finished in the middle of the major currency pack as traders continued to digest yesterday’s potential “Constitutional Crisis”.
  • US data: Q2 GDP (1st revision) came in at 2.0% as expected, though pending home sales figures missed the mark.
  • Commodities: Gold dropped more than 1% on the day while oil tacked on about 1.5%.

  • US indices gained more than 1% across the board on US-China trade optimism after China opted not to escalate tariffs further and low-level talks resumed.
  • Industrials (XLI) were the strongest sector while Consumer Staples (XLP) were the weakest.
  • Stocks on the move:
    • Best Buy (BBY) fell 8% after a disappointing earnings report.

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