Stocks build on Monday gains

US/China Talks Finally Underway

A strong start to the week delivered new record highs in the US and that positive momentum is flowing back into Europe on Tuesday, with indices opening around half a percent higher.

The slew of positive vaccine/treatment news at the start of the week has got us off to a good start as investors grow increasingly optimistic that we could have something to celebrate as early as later this year. The Trump administration’s clear desire to see any solution fast-tracked through the FDA approval process is no doubt helping to boost morale.

Moreover, talks between the US and China trade teams is finally underway, despite the heightened tensions between the two countries. This is the one bright spot in an otherwise very strained relationship but both sides seem determined to make it work.

Both sides have good reason to make this work and it seems the delay will enable Trump to highlight the success of it both this week at the Republican Convention and heading into November’s election.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

Latest posts by Craig Erlam (see all)