News

Trump & China - setting foundations for growth

10/05/2018

Despite the relentless negativity coming from the usual (media) suspects in America, Donald Trump’s Administration just keeps on making good on his campaign promises, putting America first, and delivering economic & political success at a rate that must necessitate Hillary Clinton having her local liquor store on speed dial. Hot on the heels of pulling out of the Iran deal, and putting pressure back on the Iranian regime, North Korea has given up some U.S. citizens that were imprisoned there. The FX, Equity & Oil markets have considered this, and despite some fears that the market would react badly to the Iranian deal, it has been well-received. It turns out that most investors do not see as much downside to these developments as those who cast themselves as ‘influencers’ would like.

Without wishing to detract from President Trump’s undoubted role in rehabilitating North Korea, the real catalyst behind this is China. It is the Chinese regime that summoned Kim Jong-Un to Beijing for ‘unscheduled talks’ in March of this year, and it doesn’t require too much analysis to figure out why. North Korean co-operation is the leverage that China needs to avoid a trade war with the U.S., and it is noticeable that a lot of Trump’s rhetoric around this subject has faded away. It’s a smart move by both China & the U.S., and there are really no losers. This can only bring continued economic success to both superpowers, and this is good news for Dollar & equity bulls.

Share this news

Related posts

Economic 2019-07-31_FOMC.png

Countdown to FOMC on 31st of July

31/07/2019

Market expects 0.25% rate cut on 31st of July 2019

Read more
Calendar Calendar.jpg (1)

The week ahead 15.07.2019

15/07/2019

Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally

10/07/2019

Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower

24/05/2019

Dollar Yen breaks lower

Read more