Risk-On Sentiment Shift

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WORLD HEADLINES – Risk-On sentiment returned to the markets as world stocks rose, supported by three straight days of tech-driven rises in the United States, even though markets across Asia and especially China remained in the grip of trade turbulence.

STOCKS – Tech shares have been relatively resilient to trade fears, the New York Stock Exchange’s index of 10 tech giants including China’s Alibaba has gained over 30 percent this year.

BONDS – U.S. Treasury bond yields rose slightly amid the easier mood but concern about the trade row has pushed the gap between two- and 10-year yields to the narrowest since 2007

COMMODITIES – Gold futures rose, recovering yesterday’s losses.

CURRENCIES – The dollar retreated 0.4 percent against a basket of currencies and the easing tensions in Germany helped the euro to gain 0.2 percent against the greenback.

ECONOMIC DATA – US Factory Orders m/m  due at 10:00 ET.

COMMODITY FUTURES, OPTIONS, AND FOREX TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.