On Wednesday, December 12th, the Wall St. closed up, yet the indexes remained well below their session highs, as at the last moment, many investors sold off their daily gains and secured a profit that pulled back the momentum, despite trade optimism regarding US-China relationship and a little sign of relief over the British politics.
Although, Trump and Chinese officials have been trying tenaciously to inspire the investor’s sentiment, investors were not yet prepared to bank on the White House comments, as recent Wall St. data suggests. Despite a day closed in the green, the upbeat momentum could have gathered more pace, if investors did not pull back at the end of the day to secure their daily profits, and they were not to blame, as they already have experienced different kind of market drama over the last couple of weeks.
However, investors are getting slightly optimistic over the US-China trade deal, as China declined tariffs over US autos and went for a “tremendous amount” of Soybean import. On the flipside, Trump had said that he would intervene the US judicial authorities in the case against Chinese Huawei’s CFO, Meng, if it could help his country to seal a better trade deal with China.
A managing director for BMO global asset management, Ernesto Ramos, said, “Everything Trump says is a negotiating posture ... You’d want statements that are more data and fact driven from the president. However, this approach is making China think twice about their hard stance. ”