A quadfecta, which in horse racing refers to picking the first four winners, could be extrapolated to the order of positive news hitting financial markets as risk-seeking strategies thrive after four consecutive risk-friendly developments occurred on Wednesday. The withdrawal of the extradition bill by HK set the ball rolling, which considering is what sparked the beginning of demonstrations, it definitely was a good omen to start the day in Europe. We then must throw into the mix the delay of a no-deal Brexit as the UK Parliament took control of the process, only to see a new Italian government formed with Conte back as PM and former EU economic and monetary affairs chair Gualtieri as Finance Minister. The icing on the cake came after the Chinese Ministry of Commerce issued a statement that China and the US agreed to meet in October for trade talks. Needless to day, amid the rampant risk appetite in equities (not in bond yields though), risk-sensitive currencies (USD, JPY, CHF) were taken to the woodshed, while GBP, AUD, and CAD buyers blare the trumpets by riding the bullish momentum as key tail risk events (Brexit, HK, Italy, US-China trade) are all in recess.
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