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Risk appetite wanes as good news stories begin to fray
Traction from good news can often be difficult to maintain. The longer markets have time to react to events, the chances are that the story can be unpicked. The US/China “phase one” agreement is done but yet to be signed as translations need to be poured over. A signing of “phase one” will come in January, but this leaves traders with nagging concerns that something may lie in the translation that puts a fly in the ointment. Now, it is perfectly possible that all will be fine, but it does leave capacity for disappointment. The positive traction of the risk on move is spluttering. This is restricting yields ... (full story)