Donald Trump is once again attempting to Tweet-up the US stock markets. Trump has recently tweeted the following:
Good things were stated on the call with China the other day. They are eating the Tariffs with the devaluation of their currency and “pouring” money into their system. The American consumer is fine with or without the September date, but much good will come from the short deferral to December. It actually helps China more than us, but will be reciprocated. Millions of jobs are being lost in China to other non-Tariffed countries. Thousands of companies are leaving. Of course China wants to make a deal. Let them work humanely with Hong Kong first!
This tweet follows the tweet from the US session that was as follows:
“We are winning, big time, against China. Companies & jobs are fleeing. Prices to us have not gone up, and in some cases, have come down. China is not our problem, though Hong Kong is not helping. Our problem is with the Fed. Raised too much & too fast. Now too slow to cut….
..Spread is way too much as other countries say THANK YOU to clueless Jay Powell and the Federal Reserve. Germany, and many others, are playing the game! CRAZY INVERTED YIELD CURVE! We should easily be reaping big Rewards & Gains, but the Fed is holding us back. We will Win!”
FX implications:
The markets are NOT buying it this time around. The market is risk-off and alarmed by Chinese and European data as well as the UK and US yield curve inverting. The Yen is bid and global stocks are in a sea of red. commodity-Fx is hurting as well ahead of today’s key Aussie Employment data.
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