“Wall Street” is betting on the end of the worst in Trump’s commercial war

“Wall Street” believes that the worst thing in the trade war of US President Donald Trump is behind our backs. The latest example of this came on Tuesday, when reports of mitigating trade tensions between the United States and the European Union, to the Standard & Poor’s 500 index increased by 2%, to record the largest daily gains since May 12, when the reduction of mutual customs duties between the United States and China has increased more in the market.

Although corporate profits and bond market tensions have rushed stock fluctuations in recent weeks, commercial policy is still the main driver of daily market activity.

Investors were enthusiastically received efforts to reduce tensions by pushing the markets to rise, in the hope that the United States will be able to conclude deals that limit the permanent damage to the economy or corporate profits.

Few believes that trade tensions have been dissipated now, or they will not lead to declines in stock in the short term. But many see the worst fears of American restrictions that permanently rearrange global trade has been afraid, and the economic strike is unlikely to be destroyed as it seemed when Trump announced comprehensive customs duties on April 2, according to the Wall Street Journal.

Erik Sterner, chief investment official at Apolon Wealth Management Company, Eric Sterner, said: “At the present time the market is comfortable, because the last threat of customs duties (…) we only need to overcome this mystery so that companies and consumers can plan for the future.”

The rise of Tuesday came just days after the end of the Standard & Poor’s index, the worst week since Trump announced customs duties, and Trump threatened on Friday to impose 50% fees on the European Union within days, warning Apple that the iPhone devices made abroad may face large fees, which made the red color overwhelm the main market indicators.

But after a weekend phone call with the President of the European Commission, Ursula von der Line, Trump said he would postpone the fees on the European Union until the ninth of July. What led to the market response quickly, raising the Dow Jones industrial index 741 points, 1.8%. The Nasdak complex index led the gains, with a rise of 2.5%. The revenues of the standard treasury bonds decreased for 10 years to 4.432%, driven by the high prices of global bonds, as the dollar rose.
According to historical standards.

The stock reviews are still relatively high: Standard & Poor’s 500 companies are trading at 21 times for their expected profits over the next 12 months – as of the closure of Friday – compared to an average of 10 years of 18.7 times.

Some investors believe that high stock assessments are inconsistent with a number of uncertainty that are still shadow on the expectations of analysts, including unlimited repercussions of the Trump administration approach to trade.

The first investment portfolio of Global Investment Company, Keith Boucanan, said: “These expectations are not currently coinciding. Morals have been turned away, and this may be somewhat premature.”