True volatility is increasing daily; after a sharper reversal yesterday of Tuesday’s reversal, the S&P finished down 3.1% and its Average Daily Range is above 50 for the first time since January.
President Trump announced he will delay additional tariffs on China until December and the risk-appetite responded. U.S benchmarks rallied sharply with the S&P gaining 1.8%.
After taking a two-day breather from the headlines, the trade war is again heating up. Given the depth of yesterday’s rally though, this is so far a minor pullback.
Global recession fears are being echoed loud and clear after three central banks (from New Zealand, India, and Thailand) cut rates and German Industrial Production fell sharply.
U.S benchmarks suffered their worst day of the year Monday and extended losses early last night after the U.S Treasury labeled China a currency manipulator.
S&P 500 futures finished sharply lower after President Trump announced via Twitter a September 1st deadline before adding a 10% tariff on $300 billion of Chinese goods.
