25 Nov China Trade War Update 11/25
Recent updates in the market have been looking as positive as ever. The trade talks are supposedly getting closer, and Wall Street is pumping out healthy numbers. This article will give you some simple updates on the status of the market, and the political economy, domestic and global.
While the U.S. China trade war marched along the headlines, the market had another great week. This last week the S&P 500 rose 0.9% and recorded its sixth consecutive week of gains. They even hit 3,120.46, the highest closing level ever. This makes the S&P up 24% from the year before.
This healthy climb has come from the hopes of a trade deal between America and China. Although there was a slight hiccup on Thursday, (the first since October) the stocks jumped back on Friday after the President’s announcement that they are approaching a deal between the two countries, directly following President Xi’s declaration that they definitely are looking for an agreement. The positive effects on the market helped bounce back from some negative moments this week.
In other, but related news, eyes continue to watch the oval office as Trump decides whether or not to sign a pro-Hong Kong rights bill. The bill has complete support from the House (417 to 1) as well as the Senate. However, the President fears that it could worsen the relations with China, and therefore the possibilities of a trade deal anytime soon. There is a catch. With such a massive majority going for the bill, if the President decides to veto, it will be matched with opposition. Senator Tedd Cruz even stated the Hong Kong bill “will become law”. The effects that this will have on the market are unsure, but there will be effects. This week will definitely show us some more developments in the situation.
We have to make sure that we stay aware of the trade deal, the Hong Kong bill, and how both of those are being talked about. The news will be a kind ally as long as we pay attention to the important headlines and not the puppy adoption segment, as cute as it may be. Remember, Plan Smarter Live Better