Extraneous factors to keep Pakistan Stock Market volatile.

• Author: Kazmi, Shabbir

Byline: Shabbir Kazmi

According to CNBC, when the world was beginning to believe that Sino-US trade tensions were easing, Chinese officials cut short their US visit and President Donald Trump announced he doesn't really need to pull together a trade deal before the 2020 election. The news didn't lead to huge losses, but hampered the markets from its attempts over the week to reach new highs. It was also a reminder of how sensitive stock markets are to the news headlines.

With October to begin; Goldman Sachs predicts the month to be a wild one. Reportedly, stock markets remain calm in September, but on average emerge volatile in Octobers since 1928. It is difficult to predict that stock markets have reasons to stay around these levels without trade deal between the US and China, Brexit, peace in Arabian Peninsula, reduction in US-Iran hostility, cordial relationship between Pakistan and India and above all tranquility in the world.

Chinese officials changed their travel schedule and headed back earlier than planned. Nebraska department of agriculture also said the Chinese team called off a visit to farms in Nebraska. US Secretary of Agriculture Sonny Perdue confirmed the meetings were a way for China to build goodwill with American farmers. The cancellation put a damper on hopes that China would restart purchasing US agricultural goods, which it had halted in April in retaliation against imposition of tariffs on Chinese goods by President Donald Trump.

President Donald Trump on Friday said he doesn't think he needs to strike a trade deal with China before the 2020 presidential election. "I think people know that we're doing a great job," Trump said, referring to his administration's work on the economy and the military. "China's being affected very badly, we're not, we're not being affected," he said.

The New York Federal Reserve will continue overnight repurchase operations through mid-October. The process will involve three operations involving US$30 billion as well as continued overnight operations of at least US$75 billion each. The repo market provides banks the short-term funding they rely on to operate.

"Hostility between Iran and Saudi Arabia is likely to escalate further on open accusations of Iran for the attacks on Saudi oil facilities. Any loans to Iran or engagement by the international community represent appeasement," Saudi Minister of State for Foreign Affairs Adel al-Jubeir said. He asked the international community to...