The markets are set up for a fall unless the meeting between President Trump and China’s President Xi clear a very low expectations bar
On December 1 last year President Trump met with China’s President Xi at a G20 summit. From the dinner Trump decided to delay imposing additional tariffs on China for 90 days so that trade negotiations could occur. Going into the meeting the Dow Industrials had increased from 24,286 to 25,538 or 5.2% over the prior week.
Even a positive outcome from the meeting couldn’t keep the stock markets from almost entering a Bear market over the next three weeks. From its high of 26,828 on October 3 it fell to a low of 21,792 on December 24, down almost 19%. While fears of a recession and what the Fed would do with interest rates were major contributors to the markets decline, uncertainty over trade and tariffs didn’t help.
Hu Xijin is the Editor-in-chief of the Chinese and English editions of the Global Times in China. While he is not part of the Chinese government, he is a frequent tweeter with many of his tweets aimed at the U.S. government, especially about trade and the negotiations . One of his tweets echoed Wang’s sovereignty statement.Hu has also tweeted about wanting a fair trade deal and that China is willing to accept a long trade war.
Going in the December G20 meeting between Trump and Xi the VIX was just above 18. While it fell on Monday, December 3, it rose over the month to reach a high of 36 at the markets low point on December 24. The VIX closed at 15.4 on Friday and has fallen this month as the markets have rallied. There is always the possibility that investors and the algorithms that drive the market will treat any good news from the meeting positively. However, the VIX could quickly rise and the markets drop if the news out of meeting falls short of what are low expectations.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Trump-Xi meeting this week could head off a global recession or worsen outlookAs President Trump and Xi Jinping meet in Japan later this week, the course of the global economy may depend on which Donald Trump shows up.
Read more »
China's President Xi to attend G20 summit from June 27-29: XinhuaChina's President Xi Jinping will attend the G20 summit in Japan next week,...
Read more »
Buy This $13 H&M T-Shirt Before It Sells Out AgainI got five!
Read more »
Buy This $13 H&M T-Shirt Before It Sells Out AgainI got five!
Read more »