After spiking last week, both measures are “fading, reflecting lower tensions related to both trade and coronavirus,” the CEO of Tallbacken Capital Advisors wrote in a note on Thursday. The two measures have been moving together for at least the past year -- initially on trade headlines -- and now on the coronavirus.
“Risk conditions appear to be pretty supportive if coronavirus does not dramatically accelerate,” according to Purves. “On political dynamics, we think it is a reasonable assumption that Trump will continue to have a softer tone on China trade into the election given the overlap of manufacturing jobs in key swing states.”
This article was provided by Bloomberg News.