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Markets React to Trade Talks

International reaction to U.S.-China trade talks leave markets stirred but not shaken.

Provided by: Nate Lewis

Reactions to statements by President Trump regarding the ongoing trade talks between the United States and China have caused movement across several financial markets in recent days. President Trump has indicated a possible increase to existing tariffs on $200 billion in Chinese goods.1,2

 

Markets rallied on news that Chinese negotiators still intended to meet in the U.S. for further talks; though, they may not have been as close to finalizing a deal as anticipated. Markets in the U.S., China, and Europe reacted to the news, with American markets seeing recovery within hours.1,2

 

On May 6, the Trump administration indicated that it may increase tariffs on Chinese goods.3

 

As interesting as this type of news can be to follow, it’s important to take a long-range view. In this case, the fast drop and quick recovery of the markets serve to illustrate that cooler heads can prevail during market volatility. An investment strategy that balances risk tolerance, time horizon, and one’s personal financial goals can often be more resistant to turbulence.

 

If you’d like to discuss this week’s developments, feel free to call me at 217-337-5584 or email me anytime at Nate@paullewis.com.

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

 

Citations.

1 – bloomberg.com/news/articles/2019-05-05/yuan-sinks-with-u-s-index-futures-on-tariff-risk-markets-wrap [5/6/2019]

2 – cnbc.com/2019/05/06/europe-stock-market-sharp-losses-as-us-china-trade-tensions-escalate.html [5/6/2019]

3 – bloomberg.com/news/articles/2019-05-06/u-s-says-it-will-raise-tariffs-after-china-reneges-on-promises-jvcunuec [5/6/2019]

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