Trade Deal Optimism Shifts from China to the U.K.

U.K. deal hope keeps sentiment high

Highlights

• U.K. deal hope keeps sentiment high

• Yen tailwind fades with BoJ expected to delay further tightening

• Reindustrializing America won’t be so easy

• Waning demand is forcing fast food to cut prices

Key Takeaways

• Trade Whiplash Hits Markets: Volatility remains the name of the game and was on full display in yesterday’s session. What started out as a positive session on U.S.-China trade optimism quickly evaporated thanks to Bessent watering down expectations and Trump taking a harsher stance on any tariff relief later in the day. The bulls did get one positive headline to end the day, mind you, with the Administration looking at easing global chip restrictions that were set to come into force next week. All and all, it was not the kind of day investors might have been hoping for, given the initial announcement of trade talks this weekend and a stark reminder of the short-term trading environment markets find themselves in.