15 May

Is Trump Gearing Up for a Settlement with China?

WRITTEN BY Mayur Sontakke, CFA, FRM

Candid, constructive, and inconclusive  

On Friday, US indexes rose after Trump’s tweet calling the talks “candid and constructive.”  However, the United States and China ended two-day tariff talks on Friday without any conclusion. Tariffs on $200 billion worth of Chinese goods also came into effect on Friday. Trump also instructed officials to place tariffs on remaining Chinese imports (worth ~$300 billion).

As a result of anxiety over the trade deal, both Asian and US indexes fell sharply on Monday. The S&P 500 (SPY) Index fell 2.4%, the industrial-heavy Dow Jones (DIA) tanked 2.38%, and the tech-focused Nasdaq (QQQ) was the biggest casualty,  losing 3.4%.

Is Trump Gearing Up for a Settlement with China?

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

China retaliates

Although Trump warned China not to hit back, China (FXI) announced tariffs on US goods entering its borders on the same day the markets crashed. China said $60 billion worth of US goods would attract tariffs up to 25% starting June 1.

Trump’s stance

While President Trump remained defiant in his tweets, his comment that the current trade talks are just a squabble seems to be a sign of reconciliation. Through a tweet on Tuesday (a day after the crash), Trump said that his “respect and friendship with President Xi is unlimited.”

While the markets remain tense, I feel that Trump may be gearing up for a settlement with China as the trade war is also hurting the US economy. The PMI for April pointed to the second-softest manufacturing activity since June 2017.

Latest articles

After opening on a bearish note on Wednesday, Tesla (TSLA) was trading with 4.8% losses for the day, near $195.25 at 1:16 PM ET.

With voting conducted in seven phases panning six weeks, India’s (EPI) elections have been a grand affair—to say the least. Tomorrow is the day of the results.

Qualcomm (QCOM) stock fell more than 10% in the first half of trading on May 22 after it lost its licensing lawsuit with the US FTC (Federal Trade Commission).

Apple (AAPL) suffered a setback recently when the US Supreme Court allowed an antitrust lawsuit against the company to proceed.

Today doesn’t seem to be a good day for electric vehicle companies. Earlier today, NIO stock hit an all-time low of $4.00.

22 May

Cannabis Stocks Struggle to Find Direction


The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half.