(11 DECEMBER 2018)DAILY MARKET BRIEF 1:Trade hopes calm markets

Equities recovered a bit, after news broke of a teleconference between US Trade Representative Robert Lighthizer, US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He. The troika are discussing the schedule of trade negotiations, and this has comforted rattled markets. Asian shares have moved to positive territory, led by China’s CSI 300 +0.48% while Hong Kong’s Hang Seng budged +0.07%. Japan’s Topix fell 0.91% to its lowest since May 2017 while the Nikkei 225 closed at -0.34%. US automakers Fiat Chrysler, Ford and GM are pushing the US government to restrain imports of Japanese cars. European shares are opening positively, despite worries about the ongoing drama of Brexit. GBP/USD is bouncing back from 1.2561 (10 December low) at 1.2619 and approaching 1.2660 short-term.

The arrest of Huawei CFO Meng Wanzhou on 1 December under order of US authorities, dampened optimism about Sino-American trade talks. Investors have run toward safe havens. Gold is up 2.33%, its highest in five months. The CHF and JPY gained 1.10% and +0.44% against the USD since last week.