On analysis of the jolting move in S&P 500 Futures soon after the U.S. President Donald Trump tweeted that the U.S. was “getting VERY CLOSE to a BIG DEAL,” which seems to shine less as the U.S. negotiators are preparing only to offer to cancel the next round of import tariffs on Chinese goods and cut existing tariffs in return for guaranteed purchases of U.S. agricultural goods, the Wall Street Journal reported Thursday, citing people familiar with the matter.
I find that all the equations of tariff trade tussle between the two major economies of the world are still intact as they were a month earlier. There is no doubt that the global equity markets are anxiously watching for a positive outcome before the December 15 deadline. But, such a surprising jolt may shake the global economies beyond their capacity to bear such surprises, without any constructive decision.
Finally, I conclude that such fake moves will only extend exhaustion in global equity markets; particularly at the time while most of them have attained peaks amid growing hopes of a deal on Sino-U.S. tariff trade front; which may be an end to 17-month long damaging war between the U.S. and the China. I find that the jolting move, seen by the S&P 500 futures on December 12, may drive them below the level of 3030 shortly.
Watch my video on S&P 500 Futures below.
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