Traders Watch for Trump Put After Lutnick Hints at Relief

(Bloomberg) – When President Donald Trump's plan took place, the American stock tariffs, the man who referred to the stock market decreased as the scale of success remained calm.

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This, at least, until the market is closed with the worst stagnation for two days since December. Then a glimmer of light appeared from the Trump administration: The Minister of Commerce told Howard Lootnik Fox Business that the president could provide a way to relief the tariff for Mexico and Canada on Wednesday.

Investors immediately responded, as they feed a march after working hours in stock futures and won 1 % in the largest European Training Foundation that follows technology shares. S&P 500 Futures increased by 0.9 % at 05:00 am in New York on Wednesday, while the shares rose in Tesla Inc. 2.9 % in market trading with an arrow that was worn from a low -four -month -old strike on Tuesday.

This does not mean that the impact of politics is imminent – the Trump administration has sent mixed signals in the past. This comes in a flagrant contradiction with Trump's statements earlier, when he threatened to raise the fees on Canada in proportion to the retaliatory definitions of this country.

But the upcoming Lutnick's comments following the sale of another market confirm the idea that Wall Street strategies expect Trump to be harmonious to the mood on the US financial markets, and may amend policy accordingly.

“Trump was” very open about the presence of some short -term pain to achieve long -term gains, but there is a point where this short -term pain will be too much. “Said that it seems to be back away from things. I don't know if this is the work of today, but it is definitely on the horizon in the short term.”

Thinking is that the US president's tendency to use the stock market as a report card means any policy that rocked investors that will quickly abandon these plans. Several Wall Street companies have guessed the amount of pain that Trump can bear in the S& P 500 index before declining. The level of the index became known as “Trump's Status”, referring to the option of mode.

Bank of America Corp strategies that Trump's first strike is the level of the S&P 500 closure on election day, “The following is that long investors who are currently expecting and needing some verbal support for the markets.”

This is almost specifically as the S&P 500 closed on Tuesday, but not before you cross it in trading during the day. Part of the cause of anxiety was that the president was significantly less focused on the stock market in his second term than his post than the first, so it is difficult to measure the amount of sales that weighs.

Least

During his first term, Trump tweeted 156 of the explicit signals of the stock market, 60 of them in the first year alone, according to Alexander Al -Tamman, the global head of the tactical strategies of shares in PLC. This time, Trump mentioned the stock market only once since November analyzing 126 jobs on social media on the social truth.

“I personally think that any type of” Trump put “in stocks is still less (out of money) less.” “Customers are hedging dynamically and pressing this short at the present time, with no thing he can say now to solve this unless he completely retracted from politics.”

So far, the president has begun to be annoyed by the anxiety of investors. US Treasury Secretary Scott Beesen expressed his confidence in President Trump's wide plans to tariff for foreign countries despite the stock market.

“With China's tariff, I am very confident that Chinese manufacturers will eat tariffs – the prices will not rise,” said Pesin. “With Canada and Mexico, I think we are in the middle of a transitional period, and as I mentioned, Honda, who is moving to Indiana, is a wonderful start.”

This is not exactly what happened with Trump's tariff during his first administration, according to the economists. A working paper for the year 2019 by the National Office for Economic Research found that “the fully infection with the tariff decreases on local consumers, with a decrease in the real American income of $ 1.4 billion per month by the end of 2018.”

Some Wall Street's pros and cons suspects that it will take a more dramatic step in the S&P 500 index to get Trump. Dave Lutz of Jonestrading says that Trump may be less than 5500, a decrease from 6,045 on the opening day.

You need to be corrected

“When the media begins with the headlines about the stock market, to correct – 10 % of the highlands,” he said. “These main headlines must get the attention of the president.”

Trump imposed a 25 % tariff on all Mexican imports and most of them Canadian – with the exception of energy products, which face 10 %. Its fees on China also doubled to 20 %, while steel and aluminum speeds are scheduled to be valid by 25 % next week.

In his speech to a joint session of Congress late on Tuesday, the President reiterated a pledge to impose mutual levels of definitions on foreign countries on April 2.

While Lutnick's comments created some positive feelings in the financial markets, caution is justified because what the president says is the most important, according to Brendan Makina, a strategy in Wales Vargo in New York.

“I realized that any comment does not come directly from Trump, which should not be circulated or trusted immediately,” he said. “Until now, I still show caution and tend towards more risks.”

The bottom line is, as the American economy continues to have strong assessments and expensive stocks, investors should not expect Trump if the shares continue to stumbling – at least at the present time.

“Regardless of whether Trump or any president, the stock market uses the results of the results, does not change the fact that the market will be moved more by one individual,” said Kevin Gordon, chief investment expert in Charles Shawab and Partners. Now that this idea has been put on bed, the markets must face reality, which is, primarily, that uncertainty will dominate the foreseeable future. “

-With the help of Carmen Royck and Ruth Carson.

(Futures gains in futures, Tesla contributed to the third paragraph)

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