Analysts at Danske Bank offer a brief preview of the key event risks to be watched out for in the week ahead.
“Focus this week will turn to the 13th round of high-level trade talks between the US and China taking place in Washington on Thursday and Friday. If we get an interim deal we expect a short-term relief in equity markets, see US-China Trade - 60% probability of an interim deal, 2 October 2019. On the other hand, a failure to reach such a deal should put risk appetite under pressure again as US tariffs on USD250bn of Chinese goods are then set to move up from 25% to 30% on 15 October (next week). Another important topic to follow will be the development in the Brexit drama. French President Macron has said negotiations must be concluded by the end of this week (same signals were sent by EU ambassadors last week).”