Asian markets are drifting this morning as both the Nikkei225 and Hang Seng post modest movements for the day, the Hang Seng gaining 96 points and slightly firmer into the closing bell whilst the Nikkei225 shed 45 points.
Equity Indices have fared particularly well over the last few weeks as trade talk optimism outweighed any talk of increasing global economic slowdown. The trade talks have now wound up and whilst both sides have claimed progress, there has been nothing concrete offered. More worryingly, in my opinion, is that no date has been set for the talks to continue. I remain unconvinced that the US will achieve the extent of agreement that they are looking for and may need to offer up more compromise. I will continue to sell DOW futures as they near 26,400 and DAX futures at or above 12,020.
A strong rebound in NFP was expected on Friday and delivered upon. This led to Wall Street logging its longest winning streak in a year and a half. European equities were equally buoyant with many indices trading at an eight month high.
A vote to block a no-deal Brexit appears to have cleared one of the possible Brexit outcomes but sterling remains in the doldrums and trades at 1.3050. Upside potential for me massively outweighs the downside and I continue to accumulate on dips towards 1.3020-30 level