Trade tensions between the U.S. and China are so important, that a resolution one way or another could mean the difference of as many as 800 points to the...
The dispute between between the U.S. and China over trade policy is so important that a resolution one way or another could mean the difference of as many as 800 points to the S&P 500 stock index, J.P. Morgan’s chief equity strategist Dubravko Lakos-Bujas told MarketWatch in an interview.
The importance of getting some sort of trade deal — that lowers trade barriers and gives large, U.S. companies some certainty over future trade policies — swamps that of Federal Reserve policy or even second-quarter corporate earnings results, due to start being reported next week, because the difference between an escalation of the trade dispute and its resolution is large enough to have an even greater impact than the historic corporate tax cut instituted in late 2017, he said.
“I have a hard time in taking a stance on whether bond markets lead the stock market or vice versa,” he said. “History says once the yield curve inverts, at some point you get a recession,” but it gives very little certainty on when that recession will occur. Meanwhile, “We’re getting conflicting messages [from the bond market],” he added. “On the short end of the curve you see inversion, but looking at the 30 year minus the 5-year or 10-year, you’re seeing a steepening of the curve.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New Hurdles Arise As Manufacturing Looks To Vietnam During U.S.-China Trade WarThere are a few places that have seen substantial benefits — from companies moving production as a means to mitigate the impact of tariffs on goods from China.
Read more »
China tech bonds reward investors as trade war fears ebbThe beaten-down bonds of Chinese internet companies have rebounded since the May...
Read more »
China to reduce tariffs, improve export tax rebate policiesChina will stabilize trade by reducing tariffs, improving export tax rebate poli...
Read more »
Wyoming may hold the key to the rare earth minerals trade war with ChinaAmerica depends on China for 80% of its rare earth imports. But mining experts say Wyoming may play a key role in making the U.S. mineral-independent: Its Bear Lodge mountain range is home to one of the richest and highest-grade rare earth deposits in the country, with an estimated 18 million tons of rare earth inside.
Read more »
U.S. expects China to buy farm products during trade talks: KudlowWhite House economic adviser Larry Kudlow on Tuesday said China was expected to ...
Read more »
Kudlow: U.S. may never reach trade deal with ChinaThe United States and China may never be able to reach a trade deal because of the difficulty in resolving the relatively few remaining issues on the table
Read more »