US Open – Trade Concessions, Retail Sales, Backstop, Oil, Gold

Sep 13 12:09 2019 Print This Article

US stocks are continuing to inch higher toward record territory after China expanded their tariff exemption list and as investors begrudgingly expect the bull market to reassert itself on renewed stimulus measures by central banks. 

Optimism is growing once again that we could see a US-China trade deal and that would deliver a rally heading into 2020 election.  The Democratic debate last night showed that we could see the Chinese have a harder time negotiating a deal if we see a change in the White House.  President Trump is starting to lose his grip in key states (Pennsylvania, Florida, Texas and Michigan to name a few) and we should not be surprised to see him consider an interim deal. 

China’s latest concession paving the way for companies to buy US farm products is likely to keep the President Trump happy in the short-term.  The continuing lowering of tensions will keep risk appetite flowing through financial markets.  Equities want to rip higher and even if we see a band-aid of a solution with the US-China trade war, the prospects of fresh stimulus from all the major central banks will keep the bulls happy. 

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