Markets lifted by US-China trade and Brexit breakthroughs but deep economic risks remain

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As we enter the last quarter of the year, investors are beginning to speculate on whether equity markets will enjoy a lift into the end of the year. Bond yields and equities are indeed rising, and investors are starting to worry less about the risks to the market and the economic outlook, nearly all of which are political. So, what is behind this lift in market spirits?For a start, political risk has been alleviated. The phase-one trade deal between the US and China was welcomed by markets,…

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Breaking news, analysis and opinion from the SCMP’s Hong Kong edition.

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