Trump Rally Extends, Easing Tensions Clear Path To New Highs

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

Trump Rally Extends, Easing Tensions Clear Path To New Highs

Easing global tensions lift market to new all time high

The US equities market broke out to new all time highs this week as easing global tensions clear the way for fundamental growth. The broad market S&P 500 broke above 2,300 for the first time, extending the secular, long, short and near term trends. The underlying story is one of fundamental improvement, the catalyst is a series of events that have helped ease global tensions spurred on by President Donald Trumps protectionist stance.

Rhetoric over the course of the campaign, the post-election period and early days of the administration did little to smooth relations and led many to speculate trade wars were inevitable. The targets were not limited to traditional opponents ; Mexico, Germany and Japan were harangued as often as China. The good news, for market bulls, is that just when tensions seemed on the point of snapping Trump stepped back. He’s met with England’s May and pledged ongoing partnership, he’s placated China with a letter pledging his intent to have open and constructive dialogue, he’s met with Japan’s Shinzo Abe and renewed friendships there, all that is left is for him to mend fences with Mexico and global trade can resume in earnest.

While easing tensions cleared the path it was Trump’s announcement that his tax reform plan would be unveiled in a few week that sparked this week’s rally.US fundamentals were bullish and expansionary before Trump’s election, post election those fundamentals are expected to be supercharged by pro-growth policy. Labor markets are expected to continue improving as deregulation, tax reform, ACA reform and trade policy spur economic activity. Tax reform alone is expected to add as much as 10% to S&P 500 earnings growth this year, doubling already robust estimates. The combination of tightening labor markets, rising wages and increased demand is also expected to lead to a faster pace of inflation and further policy tightening by the FOMC.

The FOMC has long been on a path of tightening, beginning two yeas ago with the end of the Taper. The bank is now set to raise rates 2 or 3 times this year and some think that estimate is low. Regardless, the combination of growth, prospects for accelerated growth and rising inflation has led to a stronger dollar. The Dollar Index bounced from long term support at the $100 level this week and has reversed its near term down trend. The index has advanced more than 2% since hitting bottom in early February with momentum shifted to the upside.

Dollar strength and declining fear is taking its toll on gold prices. Spot gold hit and fell from resistance just below $1,250 and is showing weakness. With risk-on trading back coming back in vogue and dollar outlook strong gold prices are expected to continue falling with a test of $1,200 probably and a break below is likely.

Outlook for the US markets is bullish. If you are waiting for a pull back you might not get it. Market sentiment brightens day by day, eventually the retail market will get on board and the rally will skyrocket. Global indices are not far behind, European and Asian indices are hovering just below long term and all-time highs. While both regions face issues which may mute gains in the near term long term outlook is bullish, new highs are on the way.

Trump weighs scaling back social distancing guidelines, aims to have country ‘just raring to go by Easter’

President Donald Trump said Tuesday he is hoping the United States will be reopened by Easter as he weighs how to relax nationwide social-distancing guidelines to put some workers back on the job during the coronavirus outbreak.

Trump’s optimism contradicted the warnings of some public health officials who called for stricter — not looser — restrictions on public interactions. But federal officials suggested that advisories could be loosened in areas not experiencing widespread infection.

With lives and the economy hanging in the balance, Trump said he was already looking toward easing the advisories that have sidelined workers, shuttered schools and led to a widespread economic slowdown.

“I would love to have the country opened up and just raring to go by Easter,” he said during a Fox News virtual town hall. Easter is just over two weeks away — Apr. 12.

“Wouldn’t it be great to have all of the churches full?” Trump said in a subsequent interview. “You’ll have packed churches all over our country.”

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

Science-based coverage sent daily to your inbox — all facts, no panic

And as scientists warned the worst is yet to come — with hospital systems tested beyond their capacity and health workers sidelined by exposure — Trump addressed the nation, saying he was beginning “to see the light at the end of the tunnel.”

Trump’s comments came even as White House officials urged people who have left New York City amid the outbreak to self-quarantine for 14 days after their departure, owing to the widespread rate of infection in the metro area. It also follows on the president encouraging lawmakers on Capitol Hill to pass a roughly $2 trillion stimulus package — estimated at roughly $6 trillion once the Federal Reserve’s actions are included — to ease the financial pain for Americans and hard-hit industries.

Health experts have made clear that unless Americans continue to dramatically limit social interaction — staying home from work and isolating themselves — the number of infections will overwhelm the health care system, as it has in parts of Italy, leading to many more deaths. While the worst outbreaks are concentrated in certain parts of the country, such as New York, experts warn that the highly infectious disease is certain to spread.

The U.S. is now more than a week into an unprecedented 15-day effort to encourage all Americans to drastically scale back their public activities. The guidelines, issued by the Centers for Disease Control and Prevention, are voluntary, but many state and local leaders have issued mandatory restrictions in line with, or even tighter than, those issued by the CDC.

On Monday, the U.S. saw its biggest jump yet in the death toll from the virus, with more than 650 American deaths now attributed to COVID-19. Trump’s comments come after dire warnings by officials in hard-hit areas. New York. Gov. Andrew Cuomo said his state’s hospital system will soon hit a breaking point — resulting in avoidable deaths — even with the restrictions already in place.

“I gave it two weeks,” Trump said during the town hall from the Rose Garden. He argued that tens of thousands of Americans die each year from the seasonal flu and in automobile accidents and “we don’t turn the country off.”

When the 15-day period ends next Monday, he said, “We’ll assess at that time and we’ll give it some more time if we need a little more time, but we need to open this country up.” He added, “We have to go back to work, much sooner than people thought.”

Trump’s Easter target was not immediately embraced by Dr. Deborah Birx, the coordinator for the White House task force, who indicated any move would have to be guided by data still being collected. She suggested that public health professionals could recommend a general easing, while pushing for local restrictions to remain in the hardest-hit areas.

Trump acknowledged that some want the guidance to continue, but claimed without providing evidence that keeping the guidance in place would lead to deaths from suicide and depression.

“This cure is worse than the problem,” Trump said.

During a press briefing Tuesday evening, Trump said public health officials and economists were “working to develop a sophisticated plan to open the economy as soon as the time is right — based on the best science, the best modeling and the best medical research there is anywhere on earth.”

Trump’s enthusiasm for getting people back to work comes as he takes stock of the political toll the outbreak is taking. It sets up a potential conflict with medical professionals, including many within his government, who have called for more social restrictions to slow the spread of the virus, not fewer.

Dr. Anthony Fauci, the nation’s leading expert on infectious diseases and a member of the White House’s coronavirus task force, did not appear at the virtual town hall, but Trump denied there were any tensions between the two men.

“I will be guided very much by Dr. Fauci and Deborah,” Trump said.

At the press briefing later, Fauci said, “No one is going to want to tone down anything when you see what is going on in a place like New York City.” But he suggested he would be willing to examine the potential for easing the CDC advisories in areas that have been less affected by the outbreak.

Larry Kudlow, Trump’s top economic adviser, told reporters Tuesday that “public health includes economic health.”

“That’s the key point. And it’s not either-or. It’s not either-or, and that’s why we’re taking a fresh look at it,” he said.

During a private conference call with roughly 30 conservative leaders on Tuesday, Vice President Mike Pence reinforced Trump’s eagerness to lift coronavirus-related work and travel restrictions “in a matter of weeks, not months.”

When pressed on a specific timeline for lifting restrictions, Pence said there would be no formal decisions made until the current 15-day period of social distancing was complete, according to a conference call participant who spoke on the condition of anonymity to share details of the private discussion.

Pence told the group that accommodations would need to be made for the highest-risk populations if and when restrictions begin to be lifted.

Despite Trump’s rosy talk, other elements of the government were digging in for the long haul. Top defense and military leaders on Tuesday warned department personnel that the virus problems could extend for eight to 10 weeks, or even into the summer.

Army Gen. Mark Milley, the chairman of the Joint Chiefs of Staff, said during a Defense Department town hall meeting that restrictions could go into late May or June, possibly even July. He said there are a variety of models from other countries, so the exact length of the virus and necessary restrictions are not yet clear.

Gold Declines After Trump’s Comments on Iran Ease War Tensions

LISTEN TO ARTICLE

SHARE THIS ARTICLE

Gold prices fell after President Donald Trump said Iran “seems to be standing down,” easing fears of further hostilities that spurred the metal’s earlier rally.

Trump said no Americans were harmed by an Iranian missile attack on U.S. bases in Iraq early Wednesday. Iran’s restraint and Trump’s measured remarks in response suggest a path toward easing tensions with Tehran, which surged after the killing of a top general, Qassem Soleimani.

The precious metal earlier climbed above $1,600 an ounce, extending its rally to a six-year high, after Iran launched more than a dozen missiles at U.S.-Iraqi airbases. Palladium also soared to a fresh record.

Gold’s decline “is a reaction to the Iranian attack that now appears clearly to be a de-escalation, and Trump’s team seems to be clearly reading it that way,” said Tai Wong, the head of metals derivatives trading at BMO Capital Markets.

Gold futures for February delivery fell 0.9% to settle at $1,560.20 an ounce at 1:30 p.m. on the Comex in New York, snapping a 10-day advance with the largest drop in a month. A Bloomberg Intelligence gauge of big producers of the precious metal fell 1%.

“Gold essentially responded to risk-off environments,” Bart Melek, head of commodity strategy at TD Securities, said by phone on Wednesday, before Trump’s statement. “No American lives were lost, and the president was quite clear that if American lives were lost we would retaliate.”

Bullion’s blistering start to the year has been driven by the rising hostilities in the Middle East. Before that, the metal was already rallying as the Federal Reserve eased policy last year, governments added gold to reserves, and holdings in exchange-traded funds rose.

Silver futures also fell on the Comex, while platinum slid on the New York Mercantile Exchange. Palladium futures rose 2.3% to $2,061.40 an ounce after reaching $2,068.50 , a record for a most-active contract.

More news on gold and the Middle East:
  • Gold Ticks All Boxes as Haven of Choice
  • Buy the Dip, Wait and See, Add Hedges: Investors on Iran Strike
  • Global Market Reaction to Iran Missile Attack in Four Charts
  • Iran’s Retaliation Offers Room for Trump to Calm Tensions

— With assistance by Yvonne Man, Ranjeetha Pakiam, and Elena Mazneva

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Broker 2020!
    Perfect for Beginners!
    Free Trading Education! Free Demo Acc!
    Get Your Sign-up Bonus Now:

  • BINOMO
    BINOMO

    Trustful broker.

Binary Options Trading School
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: