Stocks Rally As Beijing “May Be Open” To “Partial” Trade Deal
With algos showing they’re still firmly in control of the market, another optimistic trade headline has managed to drive Dow futures more than 100 points higher.
The report this time is that Beijing “may be open” to a “partial” US trade deal despite Washington’s decision to add several Chinese tech firms to the Commerce Department’s ‘blacklist’. Yesterday, Beijing warned that investors should “stay tuned” for its “retaliation’ against the blacklisting. So, at a time when the market was bracing for more aggressive rhetoric, Beijing has instead surprised us with another vaguely bullish trade headline, to which the market has once again enthusiastically glommed on.
- CHINA WILL BE OPEN TO PARTIAL U.S. TRADE DEAL DESPITE TECH BLACKLIST
S&P futures were up more than 25 points.
It wasn’t just the US, of course. Global markets rallied on the first sign in days that negotiations haven’t already been undermined by Washington’s latest tactics.
Over the past couple of weeks, algos have proven incredibly sensitive to trade headlines. And after so much aggression out of Washington, any sign that Beijing might look past tensions over Hong Kong, Taiwan and the NBA, as well as the tech blacklistings, would inevitably drive markets higher – even though President Trump and some of his top economic advisors have insisted that he wants a “grand” trade deal, and won’t accept a “partial” agreement.
Wed, 10/09/2019 – 05:37
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