"...make no mistake folks, we are in a most volatile, headline-sensitive environment. Expect more monster moves in both directions for the time being..."Well, Dow futures tanked to the tune of nearly 400 points last night when the following headline hit:
"President Donald Trump is considering an executive order to declare a national emergency that would bar U.S. companies from using telecommunications equipment made by China's Huawei and ZTE, three sources familiar with the situation told Reuters."While the above speaks to the legitimate (cyber) issue the world has with China, and a legitimate (not tariffs!) tactic for dealing with it, for a White House that is desperate for the market to calm down (read rally back), the timing isn't so good.
Sure, it could be yet another strong-arm tactic in trade negotiations, but, clearly, the market is begging the U.S. to begin striking a conciliatory tune. Don't be surprised if this one gets walked back soon, although I wouldn't bet on anything at this point...
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