Asian markets are trading higher on the last trading day of March as trade talks resume between China and the US resume in Beijing. Currently the Hang Seng is 270 points higher whilst the Nikkei225 has added 170 points.
Despite weak GDP data yesterday, comments from Larry Kudlow clearly indicate that the US are committed to making a deal with China, be that weeks or months away. The pendulum of optimism swung back in favour of optimism over a trade deal rather than negatively as economic data and bond yields point towards the possibility of recession.
No doubt the pendulum will keep swinging and I remain less convinced that a trade deal is the cure all that some commentators believe.
Sterling tooka battering yesterday and will look for some respite. Gold, the same.