Credit spreads are pricing in much optimism again, risking a widening if there is no agreement after the U.S. and China agreed to resume trade negotiations at the G-20 summit last weekend, LBBW analysts say in a webinar. Credit spreads have narrowed following European Central Bank President Mario Draghi's speech in June in Sintra, Portugal, where he signaled at more easing measures, they say. This narrowing trend was supported by the G-20 meeting and enabled credit spreads to almost fully recover from a widening course occurring since early May. LBBW says. "Since we see economic headwinds for 2020, we expect the [credit] spreads to tend to widen in the coming months," LBBW says.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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