Trading Day: Taking the positives from trade, China, Fed
A late rally ensured Wall Street's three main indexes rose on Wednesday, as investors digested Fed Chair Jerome Powell's press conference after the central bank left interest rates on hold, a raft of stimulus measures from China and news that high-level U.S.-China trade talks will open on Saturday. In my column today I shine a light on how the U.S. bond market's resilience has spurred hedge funds to build up their 'basis trade' bets, which are now comfortably back above the $1 trillion mark. Fed leaves rates unchanged, cites rising risk of higherinflation and unemployment 2.