Markets Price-Out Fed Rate-Cuts After US-China Trade Headlines

Stocks Leg Higher-er After US Confirms China Trade Headlines

The Dow is up 300 points, accelerating in the last few minutes after US officials confirmed China’s overnight comments that a phase one trade deal would include tariff rollbacks…

Buy the rumor, buy the second rumor…

Of course, this should be common-sense – was there ever any doubt that a phase one deal would include rollbacks of tariffs? How could they have done a deal otherwise? Notably, the deal remains unsigned…

Interestingly, the odds of a trade deal are actually below Tuesday’s highs…

Source: Bloomberg

Notably, the market is now pricing less than one rate-cut by The Fed by then end of 2020…

Source: Bloomberg

Don’t forget, greed is good, and extreme greed is better…

Source: CNN


Tyler Durden

Thu, 11/07/2019 – 12:02

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Author: Tyler Durden

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