Markets are in a more cheerful mood as we look towards European trading
Bond yields are higher on the session and that is helping to keep the likes of gold and the yen lower after the Trump administration talked up hopes of a trade deal again.
US futures are also up by 0.3% as markets stay slightly more optimistic that we are headed towards some form of trade truce in the coming weeks.
However, unless we hear a similar story from Chinese officials, I'd prefer to err on the side of caution but so far markets are saying otherwise as US stocks continue to eke out record high closes over the past two days.
I mean don't get me wrong, a trade truce is definitely positive news for the global economy. But is it really worth the hype when it doesn't encompass the more pertinent issues that could get us closer to a permanent deal in the bigger picture?
That could be a reason for market participants to lean towards buying the rumour and selling the fact when this is all said and done.
