Market Trades Risk Off Sentiment – Trade War Plays - Forex News by FX Leaders

Market Trades Risk Off Sentiment – Trade War Plays

Posted Thursday, May 23, 2019 by
Arslan Butt • 1 min read

The global financial markets continue to trade a risk-off sentiment over trade war escalation. In case you are wondering what Risk-off sentiment is, well it’s a market scenario when investors invest in risk free assets to have secure positions.

Earlier today, China’s Commerce Ministry said that the US needs to adjust its way of action if it wants to continue discussions with China to end this trade war.

The United States has increased trade disputes greatly and raised chances of a global economic recession. As per China, Beijing will take necessary steps to protect Chinese firms’ interests.

The process of retaliation is hurting companies on both sides as over 40% of the US companies showed concerns to move their operations abroad.

How is this impacting the market?

Gold – Stays bullish over haven appeal.

Stock Exchange – The stock indices are likely to remain bearish over risk off sentiment.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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