The US-China trade silence continues to reverberate across markets
There's no reason for Trump to rush the decision for the moment but as market participants, we could learn to pick up on certain patterns of his as we await the final say.
The longer the silence continues, the more deafening it gets and I reckon that will cause markets to be more nervous and jittery ahead of the weekend. The logic in that thinking is quite simple really:
- If there's good news i.e. tariffs delay/cancellation, Trump is likely to announce it before markets close or during the week itself
- If there's bad news i.e. tariffs to go ahead, Trump is likely to announce it after markets close on Friday
Well, that is not to say that he still won't announce good news even after markets close on Friday but in my view that's just the general pattern when it comes to Trump.
Needless to say, the decision is as good as a coin flip at this stage but come Friday and if we are still stuck in this conundrum, it's best to start thinking about sticking to cash going into the weekend or bear the risk of getting burned on the tariffs decision.
