Whimsiest of tweets affecting Wall Street

I heard an old  saying repeated last night (1 News) – “When America sneezes the world catches a cold”.

Another saying could now be appropriate – “When Donald Trump tweets Wall street sneezes”.

Wall Street went up when the US and China seemed to come to an agreement to avert more tariff increases, but it has dipped after Trump tweets raised uncertainty.

Bloomberg: China Swings Into Action on Trade as Trump Ups Pressure for “Real Deal”

U.S. President Donald Trump said China is sending “very strong signals” following weekend trade discussions in Argentina, as uncertainty remains over what commitments were made between the two nations.

Beijing will start to quickly implement specific items where there’s consensus with the U.S. and will push forward on trade negotiations within the 90-day “timetable and road map,” the Ministry of Commerce said in a statement on Wednesday morning in China.

Hours later, Bloomberg News reported that officials have begun preparing to restart imports of U.S. soybeans and liquefied natural gas — the first sign confirming the claims of Trump and the White House that China had agreed to start buying some U.S. products “immediately.”

Global markets cheered the weekend accord on Monday, only to reverse course Tuesday as doubts emerged over exactly what the world’s two largest economies had agreed on.

NY Times: Trump Warns China He’s “Tariff Man,” Spooking Stock Investors

The trade war is back on — at least as far as investors are concerned.

Stocks sank on Tuesday, as President Trump threatened China with further tariffs, just days after the two countries agreed to a cease-fire in their escalating economic conflict. Referring to himself as a “Tariff Man,” Mr. Trump, in a series of tweets, deepened the murkinesssurrounding the trade agreement, while members of his economic team talked down the prospects of a broad deal.

The fear is that a lasting trade war will undermine the global growth at a time when some of the world’s largest economies are already slowing down, and the United States, a standout performer, is also expected to slow.

Stock markets always go up and down, sometimes seemingly for the flimsiest of reasons.

Add to that are fluctuations now due to the whimsiest of tweets.

The worry is that a whopper of a whimsy may precipitate a stock market slide down a slippery slope.

 

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13 Comments

  1. Noel

     /  December 6, 2018

    Was a time when the share market was based on the performance of companies whose shares were on offer. Then if a President was shot it went into turmoil.
    Now is a Presidents tweet.

    Reply
  2. Gezza

     /  December 6, 2018

    The worry is that a whopper of a whimsy may precipitate a stock market slide down a slippery slope

    I like that. The other problem is that often any such whoppers from this whimsical whiner are whoppers.

    Reply
  3. Kitty Catkin

     /  December 6, 2018

    Would you really call Trump whimsical ? I wouldn’t.

    Reply
    • Gezza

       /  December 6, 2018

      whimsical
      adjective
      1.playfully quaint or fanciful, especially in an appealing and amusing way.
      “a whimsical sense of humour”
      synonyms: fanciful, playful, mischievous, waggish, quaint, fantastic, unusual, curious, droll; eccentric, quirky, offbeat, idiosyncratic, unconventional, outlandish, peculiar, queer, bizarre, weird, odd, freakish; informal: dotty, freaky
      “a whimsical sense of humour”

      2. acting or behaving in a capricious manner.
      “the whimsical arbitrariness of autocracy”
      synonyms: volatile, capricious, temperamental, impulsive, excitable, fickle, changeable, unpredictable, variable, erratic, quicksilver, mercurial, mutable, inconstant, inconsistent, unstable, unsteady, fluctuating, ever-changing, protean, kaleidoscopic, fluid, wavering, vacillating, wayward; technical: labile
      . . . . . .
      Works for me.

      Reply
      • Kitty Catkin

         /  December 6, 2018

        Yes, but it isn’t usually used of someone who changes in such a despotic way. It generally has the sense of something less serious.

        Reply
        • Gezza

           /  December 6, 2018

          To me it’s always meant someone who’s a bit airy-fairy, someone who changes their mind a lot, doesn’t think about things very deeply, is a bit of a flibberty gibbert. But, looking at the 2nd definion and synonyms above, I think Trump comes across as very whimsical – amongst other descriptions. Anyway, it’s good to know more precisely what are all the meanings it has.

          Reply
          • Gezza

             /  December 6, 2018

            whoops – definion = definition

            Reply
            • Kitty Catkin

               /  December 6, 2018

              I think that the second lot with a more sinister shade of meaning are US usage rather than UK; and whimsiest is not a word. Whimsy is a noun.

            • Gezza

               /  December 6, 2018

              Kindness and Compassion are middle names apparently.

              I never knew that until yesterday.

  4. David

     /  December 6, 2018

    The yield curve is inverse, this is not a happy place to be and the market agrees with Trump in that the Fed has been raising rates too quickly and it needs to pause before it tips the US into sub optimal growth.
    The Republicans tax cuts while increasing spending and making no move to curb spending is not helpful either, at this stage of the cycle they need to be reining in the federal budget to take the pressure off the Fed.
    Cullen made the same mistake and our mortgage rates hit 10.5%.

    Reply
    • Blazer

       /  December 6, 2018

      its all an artificial construct anyway…dial interest rates up,dial them down,create money …rig rates…all done in the best…possible taste!

      Reply

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