The sentiment has been pretty negative in financial markets in recent months and it got even worse after the trade war escalated at the end of July. As a result, risk assets have been on a constant downtrend, while safe havens have been surging since then.

Although, today we are seeing some improvement in the sentiment which has come after Chinese officials delivered some optimistic comments on trade. Here are some of the main comments by the Chinese commerce ministry:

• China opposes escalation of a trade war
• China hopes that US will show sincerity and concrete action
• Hopefully the US will meet China halfway on trade issues
• China is willing to resolve the issue via a calm attitude
• Both sides have been in touch, are in effective contact
• Both sides are discussing the previously planned September talks
• Important thing is both sides continue negotiations and create conditions for that
• If Chinese officials do go to the US next month, both sides should create conditions for progress in negotiations

So, the talks planned for September are on the table which is a positive thing and that’s probably the line that has sent risk assets higher today. USD/JPY has climbed around 50 pips this morning as safe havens retreat, but the climb has stopped, so I expect a reversal now.