Stock market growth had been up until October when the initial deal was expected in November, as investors bet, it is ultimately in Washington and Peking's interest to go ahead with a business deal.

In the latest Reuters asset allocation poll held November 13-28 to propose an increase of equity allocations for the second months in a row, on the expense of cash in the US, Europe, Great Britain, and Japan, due to a surging stock market.

In November their international portfolio, which was the highest since March and 46.2% in October, accounted for an average 47.5 percent of the allocations of stocks. Since April last year, a cash buffer of 4.6% has been reduced to the lowest after peaking at 7.7% in August, the highest since the beginning of 2013.

Easy monetary policy has elevated most world indexes to double-digit gain in the last year even though fears of a deepened global economic downturn continue. According to a majority of fund managers, this run in world stocks was expected to continue until next year.

This is a separate Reuters poll, published earlier this week by stockbrokers and strategists, showing that a majority of the indexes covered either broke their forecasts in a poll from the end of 2019 a year ago or were within walking distance of the end of the year.

But funds were skeptical about strong world stock performance and most said that they would maintain the current risk position roughly in the next six months that is driven more by developments in the trade war.

All of this should support stocks, but the sensitive way in which stocks are traveling is noted. Although the conditions are friendly, they can turn quickly. The greatest risk here is probably the most obvious source of disruption in global trade with the US and China. However, a majority of the fund managers took the view that financial and economic developments outside of the US would contribute to asset strategies for the coming six months in contrast to previously projected Federal Reserve policies.

The focus will, therefore, be on the continuous recovery of production and corporate income. The market expects to bounce and if it does not, stocks are vulnerable.