Trump shocked markets today following some hopeful remarks regarding the ongoing trade war between the U.S. and China.
Major U.S. stock indexes rose at the opening bell on Friday, a day after a sharp sell-off, as sentiment was buoyed by observations from President Donald Trump anticipating an expeditious conclusion to the prolonged trade war with China.
Dow Jones fights to prevent fifth straight weekly loss
The Dow Jones Industrial Average shaved its decline for the week to 0.4% early Friday, in what might potentially end up being a fifth-straight weekly loss. Three- and four-week decreases are not unusual for the index, but the Dow has not fallen for five straight weeks since June 2011.
The dip leaves the benchmark down 5% from its late-April high, and nearly 6% from its peak in October. The index has found support at its 200-day moving average in each of the previous three weeks, but with declining weekly closes settling closer to that line. The Dow Jones Industrial Average has not ended a week below its 200-day line since Jan. 25.
Are markets adjusting to the ongoing trade war?
The ongoing trade war has been impressed in traders’ heads over the past couple of weeks, as renewed tensions between the United States and China have weighed on virtually every major stock market across the globe.
At the core of the current war is Chinese telecom giant Huawei.
The United States placed Huawei on a trade blacklist last week, effectively preventing U.S. companies from working with the world’s largest telecom network equipment maker and escalating trade war between the world’s two most significant economies.
And on Thursday, U.S. Secretary of State Mike Pompeo accused telecom giant of lying about its ties with the Chinese Federal government. The statement echoed comparable sentiments from other U.S. regulators who have targeted Huawei with allegations of spying, stealing intellectual property and more.
Pompeo also dismissed Huawei CEO Ren Zhengfei’s assertions that his business would never share user tricks and said he thought more American companies would cut ties with the tech giant.
Chinese leaders have defended the telcom giant, with Chinese Foreign Ministry representative Lu Kang stating “Recently, some U.S. politicians have continually fabricated rumors about Huawei but have never produced the clear evidence that countries have requested.”
The spokesman added, U.S. politicians continue to “fabricate lies to try to mislead the American people, and now they are trying to incite ideological opposition”.