Trump Eases Off on Tariffs and Markets Jump
Rowan Crosby • 1 min read
Once again the main story in town was the US-China trade wars, however, this time it was a shock announcement that lited markets.
US President Trump came out and said they would delay 10% tariffs on some Chinese products, including laptops and cell phones. The move saw Apple shares rally strongly, which helped drag up the broader market with the SPX closing the session up 1.5%.
The move helped risk assets and hurt the safe-havens. GOLD in particular, got hit hard and is back trading at the $1500 level, after what was looking like a really bullish chart pattern only yesterday.
At the same time, WTI was up nearly 3.5% as the news could be a sign that Trump is either blinking a touch on the negotiations which would make it a bit easier for China. Or it could also mean that there is just some more politics going on behind the scenes.
Either way, it looks like the bullish sentiment will translate over to the Asian session. The USD was stronger on the news but has really been stuck in a range between 97.00 and 98.00 to date.
Asian Market Outlook
Out of Australia today, we have the wage price index which will be important given this is one area the RBA is very much interested in.
However, the main data point will be Chinese Industrial Production. If this number ticks higher than analyst expectations, then we could see a very strong rally today, given the Trump news overnight.
Markets have been beaten down a bit in the last week or so and this looks like it has the makings of a bit of a relief rally today.