The trade deal inked by Washington and Beijing is likely to hold for now, according to former top White House trade negotiator Clete Willems.
Willems’ comments came White House advisor Peter Navarro stoked confusion about the status of the U.S.-China trade deal, which briefly sent investors reeling.
Following the debacle, Willems said there are “two lessons” that investors can learn from this.
Dow Jones Industrial Average futures added 45 points, suggesting an open gain of 43 points when regular trading resumes on Wednesday. S&P 500 futures pointed to a gain of 0.15% while Nasdaq-100 futures indicated an opening advance of about 0.2%.
White House trade advisor Peter Navarro has clarified that the U.S.-China phase one trade deal is not over, and that his comments to Fox News was taken “wildly out of context.”
Fox earlier reported that Navarro, a China hawk, had said President Donald Trump decided to terminate the trade agreement.
In a Twitter post late Monday, Trump said “The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!”
A powerful earthquake of magnitude 7.4 struck the coast of southern Mexico on Tuesday, killing at least one person, buckling paved roads, and setting off a tsunami in nearby Pacific coastal areas.
One person died in the state of Oaxaca, Governor Alejandro Murat said, after the quake hit the Pacific coastal state mid-morning.
In a report, Allianz noted that 9 million workers in Europe, or 20% of those currently enrolled in short-work schemes, risk becoming unemployed in 2021.
This is because they mostly work for sectors that will take a while to recover, such as transportation, tourism, entertainment and retail.
Singapore’s Prime Minister Lee Hsien Loong on Tuesday said he has decided to call a general election in the middle of the coronavirus outbreak.
Following Lee’s announcement, the prime minister’s office said the country’s President Halimah Yacob has dissolved parliament and that nomination day will be on June 30.
The Elections Department said Singaporean voters will head to the polls on July 10.
Speculation of a looming general election has mounted in recent weeks as the Southeast Asian country earlier this month started to lift restrictions put in place to curb the spread of the coronavirus.
The net short position in E-mini S&P 500 futures is growing and is now at a level it was last at in 2011.
The short position could be a contrarian signal for the market, meaning stocks could keep rising.
However, one analyst says the theory that the herd mentality is wrong and stocks could go higher anyway may not work this time.
The final day of June is a week away, and Wall Street is already speculating that there’s the potential some asset allocators, like pension funds, could take the big gains from the stock market and move them into bonds.
There’s a wide range of views about how much selling could hit the stock market, but some strategists say the resulting market move may not be that big after all because of prior selling and action in the derivatives market.
“I find the biggest disconnect that we’ve ever seen in my 35-year history of watching Wall Street between fundamentals of the economy and the stock market,” he told CNBC’s “Trading Nation” on Thursday. “Markets need to be markets, and we can’t have that kind of intervention.”
“The charts suggest that new highs could be on the table,” CNBC’s Jim Cramer.
A chart analyst sees a scenario where the S&P 500 runs 9% from Thursday’s close to a new high near 3,400.
“The next ceiling of resistance is around 3,250, if we can clear that hurdle, Garner believes it’s smooth sailing to that high,” the “Mad Money” host said.
