As Wall Street had been sickened over the confusing comments from White House regarding the trade truce, JPMorgan Chase & Co’s trading desk would not be buying anything out of White House this week. On Tuesday, December 4th, major stock indexes plunged over 3%, as the fear of trade war with China sparkled up, just a day after Trump tweeted, “Relations with China have taken a BIG leap forward”.
As an attempt to warn the clients and to be cautious of White House comments, JPMorgan wrote in a note to their clients, “It doesn’t seem like anything was actually agreed to at the dinner. ” The JPMorgan note also mentioned about Trump’s tweet, “seem if not completely fabricated then grossly exaggerated”.
The recent league of mistrust from the Bank’s trading desk has raised a broader dilemma for the Wall Street investors, as they could not really take the White House Comments seriously. Maria Vallalou, portfolop manager for Perella Weinberg partner’s global macro strategy said on Tuesday, December 4th, “It’s a judgment call about which announcements should be taken seriously.
This situation certainly creates unnecessary volatility and complications to the investment process. ” As it has been found, it is not just Donald Trump, and unexpected comments kept flowing throughout the week including the treasury secretary Steven Mnuchin and Economic Advisor, Larry Kudlow.
In fact, recently, Mnuchin had been quoted saying that a weak American Dollar is better for the country, however, within an hour, Trump made a contradictory comment, saying that he was calling for a stronger dollar, initiating a greenback for American Dollar.