Trump On Thin Ice With Traders As US Stocks Sink Third Day
US equities suffered a third consecutive daily loss on Tuesday thanks almost entirely to trade angst.
For the second straight day, Donald Trump ramped up the aggressive tariff banter, suggesting, among other things, that it may be preferable to wait until after the election to do a deal with China and that Germany could face adverse trade consequences if Berlin doesn't fork over more money for the mutual defense.
The US president's remarks - delivered in London, where he's currently stomping a
My read of the tea leaves is trump will look to postpone the Dec 15th tariffs until January. This allows him to attempt to avoid a December flash crash like last year and would theoretically act as a distraction during the impeachment trial and allow him to say that the market crashing in Jan is because of the “attacks on trump“ via the impeachment and goad Powell et al into another cut.
Either way there won’t likely be a deal with China during the trump administration.
Meanwhile, the existing in-place tariffs continue to disrupt supply chains and damage profit margins, and business executives go into the new year with absolutely no idea what to expect from Trump (either with respect to China, or the EU, or you name the country).
But don’t worry, everything will be peachy and the SPX should levitate to new ATH’s in 2020. One of the used car salesmen on CNBC said so during today’s broadcast… (shocker)