Dow shot up 212 (session high), advancers over decliners about 2-1 & NAZ advanced 69. The MLP index was fractionally higher to the 223s & the REIT index slid lower in the 407s. Junk bond funds inched higher & Treasuries were sold. Oil rose in the 53s while gold dropped 13 to 1499 (more below).
AMJ (Alerian MLP Index tracking fund)
Trade talks between the US & China may have cooled before they even started. Originally set for today & tomorrow, the talks may only last one day. The delegation, led by Vice Premier Liu, will depart for China today. It is unclear why talks were shortened so close to the start. However White House Deputy Press Secretary Judd Deere issued this statement: “We are not aware of a change in the Vice Premier’s travel plans at this time. “ A Fri departure is being called undecided. Ahead of the latest development, Pres Trump speaking from the White House said, "In my opinion, China wants to make a deal more than I do...I am very happy right now, we are taking in billions of dollars of tariffs..." & added, "They've eaten the tariffs, they've devalued their currency and they are pouring a lot of money into their system. They've lost 3.5 million jobs and their supply chain is breaking up like a broken egg." The Chinese insist they came in good faith & while they are making soybean & wheat purchases, at larger volumes than expected, the US will not agree to the suspension of tariffs which shows a lack of sincerity. “Big day of negotiations with China. They want to make a deal, but do I? I meet with the Vice Premier tomorrow at The White House,” Trump tweeted today.
3 major US businesses angered China this week & found themselves in hot water over episodes related to the related Hong Kong anti-gov protests. However, the 2 entities — Apple (AAPL, a Dow & NAZ stock), Activision (ATVI) & the National Basketball Association — all reacted differently to Beijing’s outrage. Still, they were all accused of bending to China’s will. Hong Kong — a former British colony which returned to Chinese rule in 1997 — is a semi-autonomous city which operates under the “one country, two systems” principle, which grants its citizens a certain degree of financial & legal independence from the mainland. Anti-gov protests have rocked the city for 4 months now. They first erupted over a now withdrawn extradition bill that would have allowed suspects to be transferred to mainland China for trial. But the demonstrations have since morphed into protests against what Hong Kongers see as Beijing's increasing influence on the territory. Reactions from the 3 firms have sparked debate about China’s ability to influence discourse on its politics, even outside of its home turf.
Chinese anger over Hong Kong ensnared 3 big US businesses — and critics say they bent to Beijing
The £ rose sharply today after positive comments on Brexit from the leaders of Ireland & the UK. UK Prime Minister Boris Johnson met with his Irish counterpart Leo Varadkar for further Brexit talks, with subsequent comments causing traders to buy the £. Sterling rose to 1.2267 against the $ after trading nearer $1.2218. It was up 0.5% versus the greenback for the session.
Sterling jumps as UK and Irish leaders say there is a pathway to a possible Brexit deal
Gold futures traded sharply lower, slipping back under the $1500 an ounce mark, after Pres Trump said he plans to meet with Chinese Vice Premier Lui He tomorrow as the world economic powers hold their first day of talks in DC. “Big day of negotiations with China. They want to make a deal, but do I? I will meet with the Vice Premier tomorrow at The White House,” said Trump. Dec was off $14 (0.9%) to $1498 an ounce, after rising 0.6% yesterday. Futures for gold have settled lower in 3 of the past 4 sessions, however. The Dec contract has traded in a range of $1543-1465 for the last 4 weeks. Markets have been bouncing around as US-China trade negotiations get under way in earnest shortly. A number of conflicting reports over the likelihood of a deal had knocked stocks & gold prices around. Some reports suggested lower-level talks earlier this week had made no headway on critical issues & that the Chinese delegation's visit was cut short. However, other reports said that the White House could put in place a currency pact & suspend tariff increases that are set to take effect Oct 15. It is believed the uncertainty may provide support for bullion prices.
With all the last minute confusion, there is plenty going on for investors to digest. Trump said he would meet Chinese Vice Premier Liu He to advance a trade deal, bolstering hopes that the US was looking to strike a resolution soon, raising hopes that the parties can resolve, at least partially, tensions over trade that have stoked anxieties in the stock market. However, it's unclear if a substantive agreement can be achieved. Now there are rays of hope for a UK Brexit deal. With both trade talks said to be moving forward, developing stories will unfold. Final deals may take some (perhaps a lot of) time. This should be a very volatile day for stocks as news breaks.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 53.33 | +0.74 | +1.4% |
| GC=F | Gold | 1,499.50 | -13.30 | -0.9% |
Trade talks between the US & China may have cooled before they even started. Originally set for today & tomorrow, the talks may only last one day. The delegation, led by Vice Premier Liu, will depart for China today. It is unclear why talks were shortened so close to the start. However White House Deputy Press Secretary Judd Deere issued this statement: “We are not aware of a change in the Vice Premier’s travel plans at this time. “ A Fri departure is being called undecided. Ahead of the latest development, Pres Trump speaking from the White House said, "In my opinion, China wants to make a deal more than I do...I am very happy right now, we are taking in billions of dollars of tariffs..." & added, "They've eaten the tariffs, they've devalued their currency and they are pouring a lot of money into their system. They've lost 3.5 million jobs and their supply chain is breaking up like a broken egg." The Chinese insist they came in good faith & while they are making soybean & wheat purchases, at larger volumes than expected, the US will not agree to the suspension of tariffs which shows a lack of sincerity. “Big day of negotiations with China. They want to make a deal, but do I? I meet with the Vice Premier tomorrow at The White House,” Trump tweeted today.
TRUMP: China wants a deal
3 major US businesses angered China this week & found themselves in hot water over episodes related to the related Hong Kong anti-gov protests. However, the 2 entities — Apple (AAPL, a Dow & NAZ stock), Activision (ATVI) & the National Basketball Association — all reacted differently to Beijing’s outrage. Still, they were all accused of bending to China’s will. Hong Kong — a former British colony which returned to Chinese rule in 1997 — is a semi-autonomous city which operates under the “one country, two systems” principle, which grants its citizens a certain degree of financial & legal independence from the mainland. Anti-gov protests have rocked the city for 4 months now. They first erupted over a now withdrawn extradition bill that would have allowed suspects to be transferred to mainland China for trial. But the demonstrations have since morphed into protests against what Hong Kongers see as Beijing's increasing influence on the territory. Reactions from the 3 firms have sparked debate about China’s ability to influence discourse on its politics, even outside of its home turf.
Chinese anger over Hong Kong ensnared 3 big US businesses — and critics say they bent to Beijing
The £ rose sharply today after positive comments on Brexit from the leaders of Ireland & the UK. UK Prime Minister Boris Johnson met with his Irish counterpart Leo Varadkar for further Brexit talks, with subsequent comments causing traders to buy the £. Sterling rose to 1.2267 against the $ after trading nearer $1.2218. It was up 0.5% versus the greenback for the session.
Sterling jumps as UK and Irish leaders say there is a pathway to a possible Brexit deal
Gold futures traded sharply lower, slipping back under the $1500 an ounce mark, after Pres Trump said he plans to meet with Chinese Vice Premier Lui He tomorrow as the world economic powers hold their first day of talks in DC. “Big day of negotiations with China. They want to make a deal, but do I? I will meet with the Vice Premier tomorrow at The White House,” said Trump. Dec was off $14 (0.9%) to $1498 an ounce, after rising 0.6% yesterday. Futures for gold have settled lower in 3 of the past 4 sessions, however. The Dec contract has traded in a range of $1543-1465 for the last 4 weeks. Markets have been bouncing around as US-China trade negotiations get under way in earnest shortly. A number of conflicting reports over the likelihood of a deal had knocked stocks & gold prices around. Some reports suggested lower-level talks earlier this week had made no headway on critical issues & that the Chinese delegation's visit was cut short. However, other reports said that the White House could put in place a currency pact & suspend tariff increases that are set to take effect Oct 15. It is believed the uncertainty may provide support for bullion prices.
Gold falls back under under $1,500 on news of progress in U.S.-China trade negotiations
With all the last minute confusion, there is plenty going on for investors to digest. Trump said he would meet Chinese Vice Premier Liu He to advance a trade deal, bolstering hopes that the US was looking to strike a resolution soon, raising hopes that the parties can resolve, at least partially, tensions over trade that have stoked anxieties in the stock market. However, it's unclear if a substantive agreement can be achieved. Now there are rays of hope for a UK Brexit deal. With both trade talks said to be moving forward, developing stories will unfold. Final deals may take some (perhaps a lot of) time. This should be a very volatile day for stocks as news breaks.
Dow Jones Industrials
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