Stocks Get Boost From China Rally; Dollar Weakens: Markets Wrap
BLOOMBERG NEWS – 10/22/2018
Stocks and U.S. futures erased losses and European contracts advanced as Chinese equities built on a Friday rally after calls for calm from the country’s top finance officials. The dollar and Treasuries dipped.
Stocks are coming off the back of four straight weeks of losses in the Asia-Pacific region, with Chinese shares still in a bear market and the trade war not letting up. White House economic adviser Larry Kudlow accused China of doing “nothing” to defuse trade tensions ahead of a likely meeting between President Donald Trump and President Xi Jinping at the G20 in Argentina next month, according to the Financial Times. Investors are now worrying that the effect of tariffs will start cropping up in U.S. company earnings amid the lack of any prospect for a resolution.
“All sides are digging deeper in concrete and that’s a very dangerous thing; we’re going to see earnings that may start to reflect it,” David Kotok, chairman and chief investment officer at Cumberland Advisors, told Bloomberg Television. “This is the first quarter where it might become visible in some of these companies.”
Read the full article at Investor’s Business Daily