dChan - Q Origins Project Archive

Carmaker Shares Surge After Trump Mysteriously Tweets China Will Reverse Auto Tariffs

Long-suffering European auto stocks ripped higher on Monday as they headed for their best session in years following a late night tweet from President Trump claiming that China had agreed to lower its punishing 40% tariff on US-made cars. Ironically, shares of German companies like Daimler and BMW outperformed US auto stocks because many of the cars they export to China are manufactured in the US.

"China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%," Trump said.

China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.

— Donald J. Trump (@realDonaldTrump) December 3, 2018

Bolstering the president's claim, a top Chinese trade official declined to comment on the Trump tweet during a morning press conference, which only helped push shares higher. Trump tweeted after China and the US agreed to a "temporary" 90-day trade truce where China agreed to buy more US agricultural products to try and help narrow its trade surplus with the US while Trump agreed to suspend a planned increase and expansion for US tariffs.

Beijing raised tariffs on U.S. auto imports to 40 percent in July, forcing many carmakers to hike prices in a major hit to the roughly $10 billion worth of passenger vehicles the United States sent to China last year. Last week, China called for a "negotiated solution" to the trade standoff, saying its tariffs on US-made cars would be only 15% if not for the trade spat (Chinese policy makers earlier this year had agreed to lower tariffs on US cars before the trade war erupted in the spring).

As Bloomberg pointed out, a reduction in Chinese tariffs would benefit Daimler and BMW more than US carmakers like General Motors Co. and Ford Motor Co., as the German luxury brands dominate the top 10 list of car imports to China.

Meanwhile, Chinese carmaker shares pared their gains, while shares of Chinese car dealerships climbed, as the threat of increased competition weighed on carmakers' shares.

Meanwhile, Angela Merkel said around midday in Europe that a planned meeting between Germany auto company leaders and Trump on Tuesday wouldn't focus on tariffs.

https://www.zerohedge.com/news/2018-12-03/carmakers-shares-soar-after-trump-mysteriously-tweets-china-will-reverse-auto

Futures up and not changed from last evening's opening print

Oil is giving back some of it's after-gap (opening) gains. Approaching gap level and 'should' bounce.

Crypto's are still a mess.

Going to be a big whoosh up on opening.

This could be one of 'those' days see pic 4

Navigation and focus critical today.

Trading hat on * this is just for perspective and not actionable advice.

Looking at the MOAB for dead cat bounces. What a perfect way to tie-up the year (and banker YE bonus') than to have a gigantic push up at YE. AKA as the 'Santa Claus Rally'-yes I've always thought that label was total BS as nothing materially changes to reflect such a large movement up but that's what we get to work with.

Oil should stay above last night's opening gap up. This is not usually healthy as technically speaking it needs to fill that gap and then run up. Comms do not listen to noise from technicians or chartists. They have own agneda and mechanism to move pricing.

Look to see the Elephants dancing on open and dumping from the rear i.e. Institutional Sales ala the big boys.

If I were a managing director at any firm I would be giving the staff the 'talk' right about now. Get it in and booked…price is relative when you are trying to screw the competition. They all are trying to do that to each other.

The big issue is that none of them own anything independent from each other.

See Hypothecation

Trader hat back off

remember this is not actionable advice just commentary about flow and possible big box/boys typical strategy.

Don't do something and then come back to say "oh I fucked up because you said…"