Well, there seems to be no limit to investor optimism that US and China will reach a partial agreement to resolve the existing trade conflict which has already caused significant damage to global economic growth. New record highs were achieved, this time are the Dow Jones and S&P500, all because officials from both countries have indicated that the tariffs that had come into force in September could be eliminated if agreement is reached. The problem is that notwithstanding the noise caused by these statements, contradictory reports quickly appeared, notably from White House trade adviser Peter Navarro, who stated at Fox that “There is no agreement to remove any existing tariffs as a condition of the phase one deal.”
Photo by Zhang Kaiyv.
But for investors, only the good part of the news mattered, as it has been in recent months, which allowed for a session of gains. The refuge sectors were again punished with extra selling pressure, namely in the utilities that registered the greatest devaluation with a -1.35% loss, while on the reverse side the energy sector gained 1.58%. As I said earlier this week it could happen, the last few days have been dominated by the theme of trade war, which may remain true for some time to come, as little or no other relevant news that could move the market in the short term.
