Fed rate decision, trade truce to set market direction

THE latter half of last week was decidedly risk-on with investors encouraged by a temporary truce in the US-China trade conflict and the possible avoidance of a no-deal Brexit.

Their spillover effects could drive sentiment at the start of the week along with word that a Phase One trade deal between the US and China is complete. This, however, could be limited by data on Sunday showing industrial profits in China declined 5.3 per cent in September, traders told The Business Times.

That said, the main focus globally will be on the US Federal Reserve's rate decision on Oct 31, they noted.

For most of the year, the US-China trade issue has stirred markets and den…