It was a good day on Wall Street yesterday, as The Dow Jones Industrial Average and S&P 500 both climbed 1.1%, while U.S. crude oil surged 4% for its biggest one-day gain since June… https://on.wsj.com/2QaSeX1
The Dow surged over 400 before closing the day up around 280. Some of the pull back could have been caused by some miscommunication between President Trump and the rest of the White House.
Nyshka Chandran at CNBC reported that Trump’s description of the China trade deal doesn’t match the official White House version, “…He said Chinese President Xi Jinping’s government “will be opening up” and “getting rid of tariffs.” The White House, however, did not back up Trump’s claims about China ending tariffs…” https://cnb.cx/2Qa4FCs
The reason the markets are (and will continue to be) so volatile is because everyone is all over the place with these trade agreements that are really just promises between Trump and whoever he is talking to.
The irony of the continued no-deal deals is both sides would benefit from one. Nathanial Taplain at the WSJ explains, “Mr. Xi’s industrial policy of favoring state firms has severely damaged private sector finances. Opening up state-dominated service sectors would help revive flagging investment and give Chinese private companies some confidence they do have a future. A deal that included clear regulations and dramatically lower barriers to entry for private companies of all stripes in Chinese sectors such as health care, finance and telecoms—in return for guarantees of a standstill on further tariffs and that Chinese champions like Huawei and ZTE won’t be cut off from U.S. export supply chains—could work for both sides.” https://on.wsj.com/2EdNzxf
Yesterday was a good day. Today is not looking as good. If the President and the White House wants stability they need to bring consistency back to trade.
“I wish we could trade our trade policy”