In a pivotal move, the world is awaiting today the issuance of a joint statement between the United States and China regarding tariff negotiations. Both parties announced "substantial progress," raising expectations that the statement will carry positive news.
How did the markets react before the statement?
Gold fell by 1.5%, due to a decrease in demand for it as a safe haven.
U.S. futures rose between 1% and 1.5%, amid optimism about an imminent agreement.
The dollar rose against the euro, supported by confidence in the American economy.
Why is the statement important?
Because any positive tone in the statement could enhance investors' appetite for risk and trigger rapid shifts in the markets, especially gold, stocks, and currencies.
Follow the markets today… it could be a historic day in the economic relations between the two largest powers in the world.