Futures Extend Gains On Trump's Trade-War Retreat, Dollar Sinks

The Dollar and bond yields are lower as Sunday evening trading begins but US equity futures are up around 0.4% following President Trump's apparent retreat from Chinese trade-wars, supporting the rescue of giant telecoms company ZTE..

The Dollar Index is selling off modestly...


uhland62 Juggernaut x2 Sun, 05/13/2018 - 21:11 Permalink

I wouldn't be so harsh and call it Trump's flip-flopping.

Once they are in the WH they are subjected to advice and advisers from all and sundry. Generally speaking, all candidates promise to lighten the load of Americans but once in, all they talk about is foreign matters. I do not know whether 'they' threaten Presidents or give them carrots, but it happens time and time again. Foreign policy, a new war, a new enemy, a new existential threat. 

The GOP is also split, Kochs fund pro-immigration sections, Trumpers calling for the Wall. It's a discord in American society, business, and parties - no Russian meddling required.

In reply to by Juggernaut x2

DemandSider Juggernaut x2 Sun, 05/13/2018 - 22:14 Permalink

That's almost as bad as some blue team supporters thinking another Clinton would bring peace and prosperity to the working class. Almost, but not quite, which is why so many of us voted for the golden buffoon. We had nowhere to go. The blues' constituency, banks, won't allow labor any scraps, so it's looking pretty good for Trump, again, if he wants to run. The neoliberal leaders of the blues would rather have Trump than a real defender of earned income Americans, so they can't lose.

This economy's been a losing operation since Vietnam, so even Bernie understands that he, too, would have to protect the petrodollar and other overvaluing schemes, or watch the programs disappear. Victory in the presidential election would only blow his cover.

In reply to by Juggernaut x2

NoDebt TheRideNeverEnds Sun, 05/13/2018 - 21:08 Permalink

Only because I'm drinking on a Sunday am I going to give you a prediction:  The market ain't going that much higher.  We long ago traded the classical "economic cycle" for the "Fed cycle".  Economic activity is irrelevant.  Liquidity and interest rates are the only thing relevant in a debt-based economy.  

Point 2:  There is a lag.  About 2 years, give or take.  When the Fed starts tightening, start counting about 2 years.  We're about 1 year in, depending on where you drop the bar.  So we got about a year to go, give or take, if the Fed continues on their existing trajectory.  


In reply to by TheRideNeverEnds

Lizardking NoDebt Sun, 05/13/2018 - 21:53 Permalink

The fed will stop at some point which will be the catalyst for the next leg higher. Where the Fed stops at will be way to low considering state of the current economy so you guessed it. More upward movement in equities. Once DOW gets past 30K the FED will jump back on the slow 25 basis point hike wagon then your theory will come to fruition. 2 years from that point, restart hike, DOW over 30K will things start to slowly switch. 

In reply to by NoDebt

matermaker Sun, 05/13/2018 - 22:32 Permalink

It's a Nixon goes to China moment.  NORK already has the bomb and the world's largest slave population.  We all know that people would prefer to live more like those in Seoul than Pyongyang. So eventually, it will happen.  China is going to exploit the shit out of this, as well.

Yen Cross Sun, 05/13/2018 - 23:27 Permalink

  Not surprising...

  I'm of the proclivity, that the $usd is going to weaken over the next several months.

  Money is going to be pulled out of equity markets, and it will be substantial. The unwind will cause artificial $usd weakness, as those funds are repatriated.

 I'm more concerned with all the weak $usd longs getting vaporized.

Erwin643 Mon, 05/14/2018 - 00:00 Permalink

Oh boy, U.S. futures up a whole 0.4%!!!!

Uh... All the daily technicals on the S&P right now are overbought.

Tomorrow's going to be a down day. Sorry folks.