Continuing the trade war soap opera, China said yesterday it would not retaliate for last Friday’s Trump retaliation. Although nothing has changed, the new tariffs imposed by Trump will take effect on September 1st, but investors have taken China’s position as a sign of possible calming, or simply the Bulls have taken advantage of the news. to make an upward movement without great foundation, or at least without great conviction, because despite the appreciation of more than 1.2% in all major Wall Street indices, the volume was 1.2 billion trades, below the average of the last twenty trading days.
In sectors that led the most exposure to China, such as semiconductors, technology in general and industrials, it is noteworthy that refuge assets fell short of the others while managing to escape the red. With the end of the month today it is only natural that the movement of these two days will also be somewhat altered by the usual “window dressing”, or the adjustment of portfolios, so that short-term sentiment should not be given much importance. The point of interest for the week will be the non-farm payrolls on Friday, but soon to open we’ll see how the market will react to the new customs tariffs.
Photo by Gigi.
