According to Danske Bank analysts, the markets are in wait-and-see mode ahead of the US payroll report today and the informal deadline of a US-China phase one trade deal only nine days away.
Key Quotes
“Most equity markets are trading with a slight positive tone, though, based on cautious optimism that the US and China will find common ground and strike a deal ahead of 15 December when the US is set to put a 15% on another USD160bn goods coming from China. Yesterday Trump stated that the talks were ‘moving right along’.”
“While the two rivals seem to be getting closer to a phase one deal, the confrontation continues in all other areas. Yesterday, yet another front of tension opened up, as the White House administration is objecting to a USD1bn World Bank loan to China. The rift has another angle to it as the World Bank is now headed by David Malpass , who is American and was appointed by Washington earlier this year.”
“US tensions with North Korea have resurfaced and in the past days turned into an exchange of insults. Yesterday North Korea named Trump a ‘dotard’ in response to Trump calling Kim Jong-Un ‘rocket man’ again three days ago. North Korea has threatened to end the diplomatic route by the end of December unless Washington makes concessions.”
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