U.S.-China deal revives markets and ‘Trump put’

During the weekend, both the US and China have lowered each other for 90 days for 90 days. That is much more than expected, as Trump said on Friday that a rate of 80% at China “Sems Right!” The US still keeps its 20% fentanyl-related levy on China, so the total duty on Beijing adds to 30%.

Although high, 30% is far from 145%. Investors were ecstatic and sent shares rise. Technology names such as Nvidia And Widthcomas well as discretionary shares of consumers, including Nike And StarbucksCollected. The Razoria market that occurs to the “Trump Put”, the idea that a falling market will cause measures of the president who owns.

That said, such as Dario Perkins, director of the global macro strategy at TS Lombard Peded, it is “(kind) of funny that the optimistic cause for Trump 2.0 is in fact that it will reverse the most of what it has done so far.”

A Trump may just have the president who brings things back where they were eleven.

China and the American suspension must rates
The US and China agreed on Monday to a first trade agreement that suspends the most rates on the input for 90 days. The “mutual” rates between Buntries will be reduced from 125% to 10%, but the US ‘20% tasks on Chinese import that will withdraw to Fentanyl will remain, the total total total rates on China are 30%. Treasury Secretary Scott Bervent told CNBC on Monday that the deal represents the progress in the “decoupleming” of the country from China for “strategic supplies”.

Win for China, according to Beijing
After the trade agreement of the US-China was announced, US President Donald Trump said that Beijing “agreed to open,” but we offered few other details. However, Chinese officials, influencers and media -run media on Monday, the trade agreement with us as a victory and a justification of Beijing’s negotiation strategy, “the solid countermeasures and resolution of China are very effective,” said an account on social media. To China’s National BroadCastr CCTV.

Investors welcomed the Handelsdeal
News from the two super power trade turbo shares of the super legs on Monday. The S&P 500 Shot 3.26%up, the Dow Jones Industrial average Climbed 2.81% and the Nasdaq Composite Peaks with 4.35%. Pan-European Stoxx 600 Index rose 1.21%. Shares of shipping giant Maersk Gagde 10%. The proceeds from the American treasury and oil prices rose when the chance of a recession seemed to be reduced.

Technology -shares are strongly reduced
Members of the so-called beautiful 7-group added a total of $ 837.5 billion in market value on Monday, the largest collective move for the group since Apil 9. Apart from this bag with shares and their technological colleagues, consumer-discretionary shares also collected. The US-China agreement has shown the idea of ​​the ‘Trump Put’, in which the President will take action to prevent markets from falling drastically.

[PRO] S&P shows key level from the past
With the meeting of the S&P on Monday, the wide index was spent to the most important technical level. However, the speed of the movement is not typical and suggests that investors are overwhelmed by trade developments – and perhaps for the next milestone of the market.

Tarief break means new arises in freight shipments and higher prices

According to retailers and logistics managers, a sale in export from China to the US should be expected, since the first trade agreement by the US and China causes importers to continue shipments during the 90-day break about prohibition rates.

“I have customers with thousands of containers that have been advertised in advance in China who are ready to eat,” says Paul Brashier, vice-president of the global supply chain at his logistics.

Rick Muskat, chairman of family business Deer -Herten Herten, says CNBC that the 30% percentage allows to allow shipments from China, but counting count rats will probably shoot up because of the raised demand.

“Our costs will increase closer to 40%,” said Muskat. “So we will have to increase the prices for autumn deliveries.”