U.S. stocks climb to new highs as U.S. and China sign Phase One trade deal

Bull Rally

It’s done! U.S and China signed their Phase One trade deal on Wednesday 15th January 2020. And the Dow, S&P 500 and Nasdaq reach new all time highs! The deal in numbers China bought $186 billion of U.S. goods and services in 2017 and now agreed to purchase an ‘additional’ $200 billion in U.S. goods over the next two years as part of the Phase One trade deal. These ‘additional’ purchases will come in addition to the 2017 U.S. exports. The deal is reported to stipulate that China will buy…

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Trump set to sign trade deal

U.S. China Trade Deal

President Trump is due to sign the U.S. China Phase One trade deal today, 15th January 2020. The deal is clearly a positive move in the right direction and very welcome. It’s definitely injected steroids into the U.S. economy and helped stocks enjoy an end of year rally. But will it really meet market expectations – or will it be a non-event? Only part of the solution Stocks in Asia lost ground ahead of the deal signing after the U.S. Treasury Secretary was reported to have said U.S. tariffs on…

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U.S. stock markets remain bullish despite escalating geopolitical tensions

Stock Market

Before Friday, U.S stock markets were still in a very bullish mood after stellar gains in 2019. After a recent number of positive data sets such as good employment, good company reports, revised GDP (up) and the Fed’s helping hand, markets remained extremely bullish. The FOMO brigade took over pushing the Dow, S&P 500 and Nasdaq to all time new highs. What was not to like? Mood swing Then the party mood changed dramatically as a U.S. air strike in Iraq killed a popular Iranian military commander. The mood changed.…

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Date set for signing U.S. – China Phase One trade deal

U.S. China Trade Deal

U.S. President Donald Trump announced 31st December 2019 that he will be signing the U.S. – China Phase One trade deal on 15th January 2020 in Washington. The deal, is expected to reduce tensions between the two countries. The U.S. president said, the treaty would be signed in Washington in the presence of ‘high level representatives’ from China. In a tweet the President also said, ‘At a later date I will be going to Beijing where talks will begin on Phase Two!’ Mr Trump recently called off plans for tariff…

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U.S. third quarter economic growth confirmed at 2.1%

U.S. Gross Domestic Product

U.S. economic growth pushed up slightly in the third quarter, the U.S. government confirmed on Friday 20th. December 2019 There were signs the U.S. economy more or less maintained the moderate pace of expansion as 2019 came to a close. This was supported by a strong labour market. GDP – Gross Domestic Product increased at a 2.1% rate, according to the U.S. Commerce Department. U.S. markets pushed up. The Dow and S&P 500 touched new intra day highs.

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Boris emboldened by majority election win!

Boris Johnson Get Brexit Done

Brexit update: Johnson wins vote on his deal, requests MPs to move on Boris Johnson’s Brexit deal cleared its first hurdle in Parliament on Friday, placing the UK on course to leave the European Union next month. MPs voted by 358 to 234 for it to proceed to its next stage Opening the Commons debate, the prime minister declared his legislation (deal) offers ‘no possibility’ of any further delay, with the transition period due to end on 31st December 2020. Brexit – Take 2 That sets the clock ticking again…

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U.S. President Donald Trump impeached

U.S. Impeachment

U.S. President Donald Trump was impeached by the house of representatives on 19th December 2019 becoming only the third U.S. president in history to be impeached. Trump was impeached on charges connected with abuse of power in his dealings with Ukraine as well as obstruction of Congress. He is the third president to be impeached though none have ever been found guilty. President Bill Clinton was the last president to be impeached. Andrew Johnson was impeached in 1868. Richard Nixon resigned in 1974 before he could be impeached for the…

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To deal or not to deal, is that the question?

Market high

November 2019 saw U.S. stocks benefit from continued speculation surrounding the possibility of a U.S. – China trade deal. Positive comments such as, ‘trade talks progress’ and ‘we’re close to a deal’, blindly pushed U.S. stocks to all time new highs! The DOW, S&P 500 and the Nasdaq all became record breakers… again! Recession – what recession? Strange really – just 6 weeks or so ago, much of the media speculation was about recessionary fears and global slowdown, and yet here we are with all three major U.S. indices basking…

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Federal Reserve to announce rate decision Wednesday 30th October

Federal Reserve

Another rate cut likely – and then what…? How likely is it that the Federal Reserve will cut interest rates for the third time in a row as US stock markets touch all time records? The general consensus among market analysts and pundits alike appear to suggest a cut is widely expected. Indeed, the percentage probability hit around 90% in favour of a 0.25% interest rate cut last week. However, with the U.S. markets in ‘full steam ahead’ mode and the S&P 500 touching a new all time high –…

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Election or referendum by proxy. Will December election break Brexit deadlock?

Election

Finally the UK parliament makes a positive move to back Boris Johnson’s call for a December election. Will it deliver an opportunity to break the Brexit deadlock or will it deliver yet more uncertainty? Referendum by proxy? My worry is that the UK public will see this as a second referendum. But at least the voter will be better informed this time round – won’t they? ‘Flextension’ On Monday, the EU agreed to postpone Brexit day until 31st January 2020 to give the UK PM time to persuade members of…

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