Daily Markets: Investors Unclench; US-China Phase 1 Deal Imminent
The S&P 500 set a new intraday high and the Nasdaq Composite Index closed at a record high yesterday as investors breathed a sigh of relief and unclenched following President Trump’s statement that he would tighten sanctions on Iran – which would remain in place “until Iran changes its behavior” — rather than use military force. The de-escalation rally that ensued saw nine of the 11 S&P 500 sectors move higher yesterday, was followed across the globe with Asian equities closing the day higher. Lending a helping hand to the market’s mood today was China’s confirmation Vice Premier Liu He will sign a “Phase 1” deal next week in Washington.
European markets are trading higher across the board, shrugging off renewed timing concerns over the UK’s exiting the European Union. While Boris Johnson’s position is the U.K. won’t extend its transition period beyond 2020, and that he wants a Canada-style trade accord (under which 98% of goods traded are free of tariffs), European Commission President Ursula von der Leyen has said it is “basically impossible” to negotiate all aspects of its future relationship with the EU by the end of 2020. Did anyone really expect drama around Brexit to not follow us into 2020?
Despite mixed retail comp sales reports being had this morning…
