Everything was looking so awesome this morning, until Commerce Secretary Wilbur Ross told a group in Davis that China"s 2025 Technology Plan was a "direct threat" to the US, sparking another round of protectionist-fear-driven selling in stocks. From Bloomberg:
- ROSS: CHINA `SUPERB" TALKING FREE TRADE, ACTING PROTECTIONIST
- ROSS: STEEL FORUM HAS MADE `ZERO DIFFERENCE" FOR OVERCAPACITY
- ROSS: CHINA IS EXPORTING MORE STEEL THAN U.S. HAS IN CAPACITY
- COMMERCE"S ROSS: CHINESE IP REPORT WILL STILL `BE LITTLE WHILE"
- ROSS: IT WAS NO ACCIDENT THAT U.S. DIDN"T DROP TTIP W/ EUROPE
- ROSS: THERE"S GROWING RECOGNITION OF ACCUMULATED TRADE RISKS
Some note, however, that the Bloomberg headlines hit minutes after the stock dip was already underway, so it may be an exercise in goalseeking a reason for the drop.
Trannies were already under pressure from United"s drop, but Ross" comments pushed The S&P red briefly...
The move in stocks has also been assigned to the fact that 10Y Yields are back at 2.66%, triggering fears that TINA is over and the cost of funding buybacks is soaring.
Interestingly, no reaction in bonds or the dollar (which both continued their trends lower in price).
No comments:
Post a Comment