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Nothing major on the agenda in Europe today

Markets are continuing to keep the anticipation on US-China developments, with watchful eyes on headlines ahead of key meetings in the next week. US and Chinese officials are slated to meet in Malaysia on the sidelines of the ASEAN Summit, with Trump also confirming his attendance. That will pave the way for him to meet with Xi Jinping in South Korea at the end of the month, with the two leaders set to put on a show to the world once again.As things stand, markets are well expecting Trump to relent on his tariffs threat. He might have reiterated that yesterday here but risk trades are continuing to keep the calm for the most part. TACO all the way.Given that the US government shutdown is also still persisting, market players don’t really have all too much else to work with. And in European trading today, another near empty calendar day is not going to offer much inspiration for traders and investors.As such, the market mood is still going to stick with the cautious optimism ahead of key trade developments while also waiting on the Fed to deliver another 25 bps rate cut next week. Tick tock, tick tock. Can time move any faster? 🤪
This article was written by Justin Low at investinglive.com.

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đź’ˇ DMK Insight

The upcoming US-China meetings are pivotal, especially with Trump’s attendance adding a layer of unpredictability. Traders should be on high alert as any announcements could trigger significant market movements, particularly in equities and commodities. If tensions ease, we might see a rally in risk assets, while any signs of escalation could lead to a flight to safety, impacting gold and the dollar. Historically, these high-stakes meetings have led to volatility spikes, often followed by a trend reversal. For instance, after the last major summit, we saw a 5% swing in the S&P 500 over a week. Keep an eye on key technical levels: the S&P is currently testing the 4,300 resistance, while gold is hovering around $1,900. A breakout or breakdown from these levels could signal the next move. Also, watch for changes in funding rates in crypto markets, as they often react to macroeconomic news. If funding rates rise significantly, it could indicate increased speculative interest, leading to volatility. The real story here is how market participants, especially institutions, will position themselves ahead of these meetings. Traders should prepare for potential whipsaws and consider tightening stop-loss orders to manage risk effectively.

đź“® Takeaway

Stay alert for market volatility around the US-China meetings; key technical levels and funding rates could signal significant shifts in risk sentiment.

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