ZFX: Cautious sentiment fuels demand for safe-haven assets this week
The rising tension between China and the US would be the main theme in the financial market in the coming days. Investor sentiment is highly cautious. However, the stock markets were just mixed in Asian session on Monday. The move was not bad last Friday during US session, meaning that the sentiment was not that bearish due to the economies reopening worldwide.
As there is no important figures announcement early this week, the whole market is likely to focus on the news from China-US relation. Investors expect that the issue will affect the global economic recovery, which will boost the safe-haven demand finally.
ZFX analyst Jacob Leung said that as mentioned last week, the tension of China-US will dominate the financial market. So far we can’t see any signs that the situation will ease. The uptrend of the dollar, gold price and the bond price were simply driven by the risk aversion.
Besides, the fears like trade war, may also put pressure on RMB and oil prices. USD/CNH seems to approach higher toward 7.2 level and now is ranging at 7.15 level.
ZFX analyst Jacob Leung said that more and more variables may be emerged, so it is no doubt that investors will be very sensitive this week, causing volatility.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.