Trade war, trade war, trade war, Cohn, Cohn, Cohn. Glad to get that out of the way. Just as we discussed in Sunday’s Tradable Events this Week, the White House is more calculated than many give it credit for and one of the President’s greatest strengths is in his negotiating. While everyone’s jaw dropped on Gary Cohn’s resignation and the media salivated on new prospects of fear, we must ask ourselves, what does this really mean and how do we trade it?
Crude oil prices got a scare on reports that Gary Cohn, chief economic advisor to President Donald Trump, is resigning, which raised fears that the world is on the brink of an all-out tariff and trade war. Cohn, the former Goldman Sachs banker, is said to be quitting because of his opposition to the steel and aluminum tariffs that President Trump has threatened to put in place.
News that North Korea is willing to discuss disarming its nuclear weapons if its own safety can be guaranteed has reduced the tension in the region and the Japanese yen has weakened a little as a result.
President Donald Trump’s proposed tariff on imported steel and aluminum, at 25% and 10%, is much more than a shot across the bow. Indeed, this could be the official kickoff of the trade war we all anticipated
The 1.1% surge in the S&P 500, the 336 points rally in the Dow Jones Industrial Average and the strong bounce in European markets on Monday are hard to justify after President Trump announced plans to slap tariffs on steel and aluminum imports last week