After the biggest weekly stock decline in two years last week, stocks roared back into the green on Monday, with major benchmarks jumping nearly 3%, while Treasury yields climbed.
The biggest story driving the turnaround was talk that the White House was ready to strike a deal with China on trade.
Founder of the world’s biggest hedge fund, Ray Dalio, echoed Asia Unhedged’s impression that Trump’s threat of tariffs, which have not been detailed or imposed yet, was just a bargaining position.
Trump’s move on trade is “modest and appears significantly politically motivated,” Dalio said in a Linkedin Post. It “could be a negotiation tactic and a political move that needn’t mean a trade war is likely.”
Chipmakers and financials led gains, on headlines such as these:
“China offers to buy more US semiconductors to cut trade surplus” (Reuters)
“U.S. Pushes China on Cars and Finance in Tariff Talks” (Bloomberg)
A negotiated settlement between the White House and China on trade is by no means guaranteed, but Trump’s oft-cited metric for judging his success as president – the stock market – sent him a strong message today: make a deal with China.
Trade wars are easy to win except when Wall Street crashes. LOL!
In essence, the market handed round 1 to China. Now, round 2.
Markets are huge political tools. Disaster manufacturing hub.
BULLSHIT!! IT WAS THE CARPET BAGGERS AND FED RES SPENDING SPENDING SPENDING .THEY CAN T LET THE MARKET SLID AGAIN ,THAT WOULD BURST THIS FRAUDULENT MARKET.AND ANOTHER EASON THE NEOCONS JUST GOT TOTAL CONTROL OF THE TRUMP ADM .AND THAT MEANS WAR AND MILITARY SPENDING.THATS IF IT DOESN TGET OUT OF HAND AND RUSSIAN CHINA DECIDE THEY HAVE HAD ENOUGH OF THIS B.S FROM THE CABAL OF NEOCON ISRAELI ZIONIST ROTHCHILD AGENDA CRIMINALS