Stocks rethink China bounce
Stocks started off the day rallying on speculation that a U.S.-China trade deal was near conclusion. Market consensus was that the deal would be signed by President Donald Trump and President Xi Jinping by the end of March. The United States would lift tariffs on...
I’m thinking of selling some of my China positions. But when?
As of the close on March 1, the Shanghai Composite was up 14.35% for the last month. That’s super for an economy that’s swimming in bad debt and facing a slowing global economy and lagging export demand.I think it’s fair to say that the rally in...
So what’s it gonna be in U.S.-China trade talks? Historic agreement? Middling deal? Failure?
The Trump administration isn’t making it any easier to handicap the results of the U.S.-China trade talks. Yesterday U.S. trade representative Robert Lighthizer tried to walk back expectations for the talks. There’s not even an agreement on a Memorandum of...
It’s official: White House extends March 1 deadline in U.S.-China trade talks
Citing substantial progress, President Donald Trump has extended the March 1 deadline for reaching agreement on a U.S.-China trade agreement and heading off a jump to 25% in U.S. tariffs on $250 billion of Chinese exports. “The U.S. has made substantial progress in...
It’s all about the MOUs: China trade talks strategy gets clearer; U.S. not so much
Judging from this morning’s news out of the U.S. China trade talks I think I can see the Chinese strategy. Step 1: Offer the United States and its President lots of money. Today the Chinese offered to buy an additional $30 billion in U.S. corn, soy beans and...
China trade talks resume–with a notable lack of momentum
The latest round of U.S.-China trade talks resumed today in Washington. The Trump administration’s March 1 deadline continues to walk nearer–although everyone on Wall Street expects that President Trump will decide good progress has been made and will...
China when? worries financial markets
President Donald Trump has made it clear–repeatedly–that there won’t be an agreement to end the U.S.-China trade war until he has met with China’s President Xi Jinping. And that’s got the market worried. Because the Trump...
Markets worry about everything this morning–especially bank and energy stocks
I dare you to find something global financial markets aren’t worried about. And, moreover, many of the worries are re-enforcing each other today. So, for example, we’ve got U.S. Trade Representative Robert E. Lighthizer, saying on Sunday TV the the 90 day...
China confirms some of Trump-Xi deal; global markets steady
It had seemed unlikely. China couldn’t officially confirm the details in the trade and tariffs deal struck between U.S. President Donald Trump and Chinese President Xi Jinping, Chinese officials said, until President Xi and the Chinese delegation returned from...
It’s important to remember on this down, down, down day that an earnings growth slump in 2019 and a 2019 recession aren’t the same thing
It’s hard to take a step back on a day when the Dow Jones Industrial average closed down more than 700 points (and 3.10%), but that’s exactly what I’m going to suggest. The huge sell off was driven by three major factors in my opinion. First, the...
On eve of Trump-Xi talks China’s economy continues to slump, overnight data say
China’s purchasing managers index (PMI) for the manufacturing sector continued to slump in November, overnight data showed. The index dropped to 50, the level that marks the divide between expansion (above 50) and contraction (below 50.) The new export orders...
The market waits to hear what Trump and Xi will say over the weekend
Nothing will be as important this week to the financial markets as the meeting between U.S. President Donald Trump and Chinese President Xi Jinping during the November 30-December 1 summit of the Group of 20 in Buenos Aires. Ahead of the weekend meeting days when the...
Market stumbles on trade news
Oil prices are up today with U.S. benchmark West Texas Intermediate ahead 2.07% to $56.84 a barrel as of 11:30 a.m. in New York. International benchmark Brent crude has gained 2.23% to $66.93 a barrel. Both prices remain below the psychologically important $60 a...
China’s Xi pushes back on trade deal
Remember last week when markets got all optimistic at the possibility that U.S. President Donald Trump and China’s President Xi Jinping would be able to hammer out an end to the U.S.-China trade deal when they meet at the Group of 20 meeting in Buenos Aires on...
Optimism on China trade talks drives U.S. stocks higher
This morning at least a tweet from President Donald Trump is the most important factor moving U.S. stocks higher. In his tweet President Trump said he had had a productive conversation with Chinese President Xi Jinping on trade. Â “Those discussions are moving...
Rally shifts into reverse as Trump administration announces more U.S. tariffs on Chinese exports likely on the way
Monday, October 29, started off with a technology-led rally. As of 10:04 a.m. New York time the Standard & Poor’s 500 was up 1.81% and the technology-heavy NASDAQ Composite was higher by 1.75%. And then Bloomberg reported that the Trump administration was...
Autoliv shares move up as future outweighs past
Before the market open today, Autoliv (ALV) delivered disappointing earnings for the third quarter. But the stock still climbed on news that China is considering cutting the tax on car purchases to 5% from 10% in an effort to stimulate the country’s auto market...
GDP grows at annualized 3.5% in third quarter, but…
Real GDP (that is GDP discounting any gains from inflation) increased at an annualized rate of 3.5% in the third quarter. Economists surveyed by Briefing.com were looking for 3.3% growth rate. In the second quarter GDP grew at an annualized rate of 4.2%. Big driver in...U.S. trade deficit climbs in August; record deficit with China and Mexico
The U.S. trade deficit in goods and services widened in August by 6.4% to $53.2 billion from $50 billion in July. That’s the biggest trade deficit in six months. The trade deficit with China rose to a record $38.6 billion from $36.8 billion in July. The trade...
Wall Street sees a Trump administration trade strategy: Let’s all gang up on China
Today Wall Street and trade analysts are saying that they see a grand strategy in the U.S.-Mexico-Canada trade deal announced yesterday, in the trade deal with South Korea, and in negotiations with Japan and the European Union. The goal, this analysis says, is to put...
China’s economy continued to slow in September so Shanghai stocks moved up
On Saturday the Chinese government and private surveys released more numbers showing that the country’s economy was slowing. In September growth in China’s manufacturing sector stalled after 15 months of expansion, according to the Caixin/Market...
Non-tariff barriers start to hit U.S. companies in China
A survey by investment companies AmCham China and AmCham Shanghai found that 52.1% of U.S. companies operating in China have seen an increase in non-tariff barriers to their business operations. The biggest problems reported were increased inspections (27.1%), slower...
Now who’s worried about a trade war? Certainly not buyers of U.S. stocks today
Today the Standard & Poor’s 500 stock index and the Dow Jones Industrial Average both hit record highs. The NASDAQ Composite was up 0.99% as of 2 p.m. New York time. The iShares MSCI Emerging Markets ETF (EEM) advanced 0.95%. West Texas Intermediate crude...
China says it won’t intentionally devalue yuan in response to U.S. tariffs
Just hours after the Trump administration announced 10% tariffs on an additional $200 billion in Chinese exports, Chinese Premier Li Keqiang said the nation wouldn’t devalue its currency in order to make its exports more competitive. Which, of course, doesn’t...
Stocks rise on “It could have been worse” reaction to new U.S. tariffs on China
A day after the Trump administration announced 10% tariffs on an additional $200 billion in Chinese exports to the United States, stocks are up on a “It could have been worse” reaction. At 12:30 p.m. New York time the Standard & Poor’s 500 stock...
President Trump announces 10% tariffs on another $200 billion in Chinese goods
Global financial markets spent most of the day waiting for the shoe to drop. And shortly after 6 p.m. Washington time it did. President Donald Trump announced a 10% tariff on an additional $200 billion in Chinese exports to the United States. Those tariffs will go...
It was a He said; Xi said market today
For much of today U.S. stocks were locked in a slightly negative range as investors and traders vacillated from fears that the Trump administration would impose a new set of tariffs on $200 billion in Chinese goods and the hope that Chinese leader Xi Jinping would...
Stocks rally on Wall Street Journal report that U.S. has proposed another round of trade talks with China
Pay close attention. The Wall Street Journal is reporting that the United States “is said” to propose another round of trade talks with China. Thats not “There will be trade talk” or “China has accepted a U.S. proposal” or even...
What if China actually welcomes the Trump administration’s tariffs?
China trade hardliners in the Trump administration, such as advisor Peter Navarro, have predicated their tariff campaign against China on the theory that hiking tariffs on more than $500 billion in Chinese exports to the United States (as proposed at the moment) will...Jim’s Daily Email Alerts:
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