President Trump Works the Phones, From Xi Jinping to Elon Musk ... And the Markets Love It!

Markets swing on “very good” phone calls

Highlights

• Markets swing on “very good” phone calls

• With no conclusion in sight, the rally of hope might be nearing the end

• Japanese stocks dismiss weak data

• EU production takes a step back, weighing on the growth outlook

Key Takeaways

• “Trade Deal” Speculation Dominates Headlines and Market Sentiment: Well, that is exactly what a headline-driven market needs — headlines. And so it was: the major averages took off in pre-open trading on the news that Xi Jinping and Donald Trump had a phone conversation. According to the President, it was a “very good phone call” that “resulted in a very positive conclusion.” The problem is — no one else knows what that “conclusion” was. The rally quickly reversed when it became clear that it was President Trump who initiated the call. Xi did not come begging. The Chinese leader knows full well that he holds some very important cards when it comes to rare earth materials.