High-beta currencies and US stocks came off early session lows after US Trade Representative Lighthizer said he expects the Trump-Xi meeting to be a success. The FX market has been very quiet ahead of the G-20 and tight ranges have been firmly being in place. The Australian dollar rebounded from the session lows and recaptured the 0.7300 handle against the US dollar following Lighthizer’s comments. The bounce however was short-lived and tight range trading persists.
The Dow and S&P 500 opened down 0.3%, while the Nasdaq started down only 0.1%. The tech sector benefited from strong earnings from HP Inc. WorkDay, and VMware. Technology stocks have had 3 consecutive down months and will likely strongly react to the outcome at the G20. If the trade war worsens, the tech sell-off could resume.
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