US Market Report
Was a great day going until the Chinese Tariffs were announced. This is POTUS playing hard-ball as he knows the Chinese are trying to wait him out
and think they can upset him in the 2020 election. The longer they wait the worse of a deal they will get as the screws will get tighter and tighter.
The answer, regarding who took this action with the announcement comes from CNBC's Eamon Javers, who tweets that far from unilateral, Trump's tweet came
"in the wake of an 11:30 meeting this morning at which President Trump got a report from Treasury Secretary Mnuchin and Trade Representative Robert Lighthizer on their meetings in Shanghai this week."
So time to put the adults in charge as these two had three days to do something and when that lack of progress was rpeoted to POTUS guess what?
Nevermind the Chinese markets are full-on retarded with printed yuan. If you think ours are bad they grew too far, too fast
and will only pay moar of a price the longer the extend these negotiations. pepe warned ya it would get bumpy as this is the consequence of high-stakes chess.
POTUS said in a series of tweets that the U.S. would slap 10% tariffs on $300 billion of Chinese goods starting Sept. 1.
It also affected the retail sector dramatically, The SPDR S&P Retail ETF plunged more than 3%, on pace for the worst day since May. Best Buy, Office Depot and Abercrombie & Fitch all tanked about 10% following the news.
Department stores are also under pressure following the tariffs announcement. Macy’s and Nordstrom both dropped about 7% while Kohl’s tanked more than 8%.
U.S. Chamber of Commerce said in a statement on Thursday the new tariffs “will only inflict greater pain on American businesses, farmers, workers and consumers, and undermine an otherwise strong U.S. economy.”
Really Nigga's????, haven't you done enough damage with your globalist pandering bullshit?-FUCK OFF!!
The move immediately rippled across financial markets, sending stocks DJIA, down more than 200 points and causing the yield on the 10-year Treasury TMUBMUSD10Y, -6.34% to slump to its lowest level since November 2016-See Cap#3-BIG PAIN here.
This is impacting the short-end moar than the long end as 2 yr notes are down almost 8% and 30 yr notes are just under -4% for the day.
Not helping this is the ISM numbers, just moar fuel to the fire, The Institute for Supply Management’s manufacturing gauge for July came in at 51.2%, the lowest since August 2016, below analysts’ expectations for 51.9%.
Any number above 50% represents an expansion of economic activity, but the factory indicator has fallen sharply in the past few months.
In other economic data, construction spending in the U.S. fell 1.3% in June.
Expectations for the Fed to cut rates by 25 basis points at the September meeting of the Federal Open Market Committee climbed to 70.4%, from 48.6% a day ago, CME Group data show-See Cap#4
This is going to get moved around just like it did prior to last week settling down in front of the FOMC meeting. Each time a news item comes out it will move.
Already covered in morning report but bears repeating is the BOE doing nothing: The Bank of England left the policy rate unchanged at 0.75%, but cut its economic growth forecast for 2019 to 1.3% from 1.5%.
The U.K. central bank noted the impact of Brexit-related uncertainty on business investment, adding that the economy had a one in three chance of falling into a recession.
The 10-year U.K. government bond yield TMBMKGB-10Y, -2.63% fell 3 basis points to 0.589%.
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