New York (Reuters) – Wall Street rose after US president Donald Trump announced a temporary stop for 90 days in the definitions that were revealed last week that markets and wiping trillion dollars from global stock markets.
Political changes also include a decrease in a 10 % collective tariff during a 90 -day period, and the increase in definitions of Chinese imports to 125 %, from 104 %, which entered into force overnight.
Market reaction:
Stocks: S& P 500 increased by 7 %, while the Nasdaq Stock Exchange jumped over 9 %.
Treasury bonds: US Treasury revenues made gains after announcing the customs tariff, after a government auction of $ 39 billion from 10 years, which proposed a good request. The auction came amid the leakage of the bond market, which was raised by the American customs tariff, forced sale and pushing cash.
Currency: The US dollar – which was less early today – is strengthened against yen and other currencies.
comments:
Tom Bruce, total investment strategy, wealth management in Tanglo, Houston
“It was a great news of the market … that seeing American bonds was very strange, amid the broader focus on the risk in the wallet. The vision of building stress in the credit market was really worried. So today it was a great relief.
“But we are still unclear what everything means yet, for the European Union, for example, and the increase in definitions in China is not a good thing, especially for retailers.
“It seemed that this thing was about China. Certainly, the large definition package was not logical to the gay economists. They felt they were creating the utmost financial lever by creating the maximum chaos – the classic game theory. So we needed to postpone it, and we got one.”
Tom Graf, Chief Investment Employee, Face, Phoenix, Maryland
“It seems that Trump focuses on focusing on China, and easier in other countries. I still think that the customs tariff by 10 % will have negative effects, but if this temporary suspension becomes 90 days in the long run, it takes the worst scenario outside the table.”
Tim Holland, CFA, Chief Investment Officer, Orion, Omaha, Nebraska
“Investors will wait impatiently to know how to respond to other countries. We also believe that the fact that the American investor’s feelings have been very declining to announce today by the president is the additional fuel for this step higher.”
Ron Becinini, Investment Research Director, Amplify, Scottsdale, Arizona
“Today’s step is a classic example of the reason for not panic, and why to follow a disciplined approach is very important.”
“Our allocations are still unchanged, as we saw the current episode as a restoration of the events of December 2018, as the markets decreased by 18.5 % by December 24, amid concerns related to commercial tariffs, government spending, high fairness and interest levels that are very high.
Gina Bulfin, head of Bulvin wealth management group in Boston
“This is the pivotal moment we were waiting for. The direct market reaction was very positive, as this explains this as a step towards the clarity that affects the need. The timing could not be better, coinciding with the start of the profit season, which starts with major banks on Friday.
“This temporary suspension may provide companies a clearer background for their directions, providing some comfort for a hungry marketing market.
“However, uncertainty waving on the horizon of what is happening after a period of 90 days, leaving investors to wrestle with potential fluctuations.”
Uto Shinohara, VIP Strategists, Mesirow Currency Management, Chicago
“In the midst of the recent feelings of ventilation and painting, investors were keen on any signs of optimism … The sensitive currencies of the risks witnessed the strongest recovery, led by the Australian dollar, while traditional safe weapons such as the Japanese yen and the Swiss franc of pressure were subjected to pressure.”
Amarjit Sahota, CEO, Klarity FX, San Francisco
“The questions will really come: Why did we see this decline today and is it a good idea? Personally, I don’t think it is a good idea: only 90 days stopped creates more uncertainty.”
“But why today? I think the talk point in almost all offices this morning is what is happening on the ground with the return for 10 years, and why did we see this huge gathering in returns and that people are emptying the bonds and who is in particular emptying of these bonds?
Stewart Thomas, the main founder, pre -investment, New York
“This is a positive sign of markets and the validity of Trump’s use of tariffs as a negotiating tool and highlights his willingness to deal with our business partners in good faith.”
Carol Shlev, Senior Market Experts, BMO Private Wealth, Minyabolis, Minnesota
“The markets were looking for a reason for the gathering for a few days. The markets can only bear harsh conditions for a long time before exhaustion – but like a small child and maturity.”
“The 90 -day suspension allows the gentle breathing room to allow negotiating stability and clearly reset the market evaluations. However, companies remain uncertain.”
Steve Sosnik, Senior Market Expert, Interactive Intermedines, Greenwich, Connecticut
“This was a surprise for sure, given that the administration has constantly said that it will not back down from the definitions and that it is not negotiable … This is a very understandable relief gathering.”
“Now we have to wonder whether the definitions are an appeal within 90 days or not. This will hinder companies’ ability to plan for the near future and provide guidance in the current quarter. Unemployment is reduced, but it is not completely wasting.”
Jay Philseld, CEO of Infrastructure Capital Adviss, New York
“This would be a great relief to the markets. This is what should have been done at the beginning … We believe that the sale was exaggerated in any case and no one took into account that oil prices are less and that there are positive things that happen as well.”
“We are now prepared for a good gathering in the profit season … This gathering is now logical. There will be some remaining concerns about the wider and stagnation, but that will become more clear with more data.”
Art Hogan, Investment Strategy Expert, B. Riley Wealth Management, Boston
“The day was the day when the nuts were already two days ago, when a person posted on Twitter what the White House called a fake news report that Donald Trump was thinking about doing what he did now – the customs tariff stopped for 90 days. This has sparked $ 2 trillion in buying in just eight minutes. Now we have no truth, and it was not surprising that we see another giant.”
Alex Morris, Chief Investment Officer, F/M Investments, Washington, DC
“This is a giant melting, because this announcement was the match that the necessary market needs. They hit the temporary suspension button and the joy of the market. But of course, there is no promise that we can solve anything in 90 days. We are certainly not outside the forest, and we may see high inflation data.
“What persuaded the president to act is the bond market, which began to send signals that this would get worse. The market movements were an absolute injury … shares are trading on tweets, feeling and fear of the age of ridiculous policies.
Mark Hackite, Senior Market Expert, Investment Management Group in the country, Philadelphia
“It is definitely good news because it shows that negotiations are in good condition enough to think they have accomplished what they need through this initial conversation.”
“But I want to put a very big warning because 8 % gatherings in 20 minutes on the Nasdaq Stock Exchange are not tantamount to the health of more than 8 % of the declines … so I am keen to give everything.”
Christopher Hodge, the chief economist in the United States, Natx in New York
“We have assumed that a form of surrender would be imminent – the financial massacre, not to mention the economic pain that has not yet been felt, and it was unreasonable for the administration to bear much longer. It seems that the separation of China seems real with no sign of concessions from either side.
“We may return to the Trump 1.0 play book for foreign countries that agree to buy more goods from the United States, and this can improve the commercial deficit in a marginal way, but it will mainly not change the commercial relationship like management’s desires.”
John Cannavan, lead analyst, Oxford Economic, New York
“The way President Trump formulated this matter does not exactly explain whether we have already a temporary stop or if we have a 10 % less mutual tariff … The president retracts some of his worst definition threats here, and I think this will be a positive to the risk assets.”
“There is one thing that he does not do is eliminate uncertainty … because the level of definitions seems to change from day to day.”
“This only adds to the broader uncertainty during our progress. But at least at the present time, we cannot be sure where the customs tariff will end, we can at least see that the president shows an increasing preparation to retract his worst definition and allow some calm to enter the markets.”
(This story was corrected to reform the date until December 24, not December 4, in paragraph 12)
(Global Finance & Markets Breaking News; Liberation by Lananh Nguyen and Lisa Shumaker)
