By Chris Becker
A very strong finish to the week on Friday night with European stocks leading the charge and then US bourses pushing higher as reports suggested that China may offer a big take up in USD to offset its massive trade imbalance with the US and stave off any further tariffs in the trade war. The news was released after the PBOC made a huge one day injection mid last week that bolstered local stocks and commodities to offset the growing concern of a slowing economy in the Middle Kingdom.
This has all helped in the USD favour, sending it to new highs and pushing the majors down, which should help correlated domestic stock markets this week. Further to the risk on news is a steep rise in US 10 Year Treasury yields while oil prices spiked to end the week on a very high note.