ZFX: Risk-on mode returns! Stock markets boom
On Monday, Asian stock markets are all trading higher as investors are optimistic towards the deal of 15 economies in the region that formed the largest trade alliance in the world. The trade deal, called “The Regional Comprehensive Economic Partnership, RCEP”, is to mainly reduce tariffs across many areas.
Global markets have already surged mainly due to the hopes on vaccine development last week. Overall, the bullish sentiment dominates despite the fears over the coronavirus pandemic. As the latest report, more than 54 million cases have been reported globally, with more than 1.3 million deaths.
Base on the “Cash is king” logic, dollar once again slipped against the major riskier currencies. Dollar index is narrowly ranging around 92.6 level. The euro bounced to 1.18 area even investors were not that bullish on the economy of Eurozone, with the strict lockdown measures recently. On the other hand, the Sterling is trading higher at 1.32 level, however with no good news regarding the EU-UK talks, and the gloomy economic outlook of the UK. The weakness of the dollar showed risk appetite among the traders, but not the fundamental judgement.
Of course, the traders may weigh the vaccine development and the resurgence of global coronavirus cases in the next few weeks. Also, many traders have already rebalanced their portfolio over the win of Biden. It is expected that the court fight by President Trump administration is unlikely to succeed.
European stocks are expected to open higher on Monday, following the momentum of Asian session, as well as the US futures.
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.