Top Market Themes to Watch Before the Year Ends

What traders need to monitor as the year-end nears:

The end of the year is fast approaching and these are some of the themes that financial market traders should keep a close eye on:

  • The US-China trade war
  • Brexit
  • The row between Italy and the EU over the Italian budget and the effect on Italian banks
  • Weaker global economic growth and its impact on US interest rates and stocks
  • Market volatility

US-China trade war

Above all else, it is probably the US-China trade battle that has dented market sentiment over the last few months and it will likely continue to dominate trading in December and beyond. At present, the spotlight is on a two-day G20 Summit in Argentina that begins on November 30. US President Donald Trump and Chinese President Xi Jinping are due to hold talks but the chances of a de-escalation are slim.

A failure to at least call a ceasefire would likely result in risk aversion remaining the principal driver of asset prices, supporting safe havens such as the Japanese Yen, the Swiss Franc and US Treasuries. The US Dollar has, some would say perversely, also benefited from risk-off trades but given that the US is a

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