Excerpt from the Financial Times quoting DataTrek’s Nick Colas:
“The steady showing for US and most European stock markets came even as a third round of US-China trade talks ended in Beijing on Sunday without a breakthrough.
Nicholas Colas at DataTrek Research said the most plausible reason for the lack of reaction by US stocks to trade war concerns was that markets believe there is no way President Trump would consciously hurt the US equity market or economy ahead of midterm elections.
‘Almost like the concept of a ‘Fed put’, there is an implicit “trade policy put” on current rhetoric, no matter how harsh,” Mr Colas said. “If all the jawboning starts to hurt US business/consumer confidence or equity prices, markets expect President Trump to back away.”….
Read the rest here in the Financial Times!