TRUMP: BETTER GO OUT AND BUY STOCKS NOW TRUMP: THE STOCK MARKET WILL REALLY RALLY NOW
That turned the more tepid mood after the US-UK trade announcement to a strong rally before US stocks ended the day with middling gains. The mood music was also affected by other headlines, with talk of the 10% blanket tariffs being the floor for any deal and perhaps more importantly the report by the Wall St Journal suggesting that the US is looking to cut China tariffs to as low as 50%.
With Trump having touted to "go out and buy stocks", one can expect him to deliver something in the day ahead to vindicate his own message. And a show of goodwill by lowering China tariffs might be just that.
However, make no mistake. Even at 50-60% tariff levels, there's still much pain and friction still in play with regards to US-China trade. Sure, there are exemptions and workarounds to circumvent the tariffs. And the 10% blanket tariffs elsewhere are basically an off-ramp for Trump as trade with China is facing a stall. It essentially allows for US firms to seek alternatives and substitutes but again, these things take time.
So even with a supposed gesture of goodwill by reducing tariffs to 50-60%, it's not necessarily going to be an inviting proposition for China.
When you take a step back, it's rather amazing what Trump has managed to achieved in the last month or so. He has pretty much hoodwinked markets into accepting 10% blanket tariffs as a good thing, not to mention the likely further decoupling between US and China in the meantime. It's pretty much Stockholm syndrome at its finest and given the playbook above, it wouldn't be surprising to see markets take to it again later today.
This article was written by Justin Low at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( Is this the playbook for US trading later before the weekend? )
Also on site :