The equity markets under the Trump presidency are the gift that keeps on giving. U.S. equity indices hit new highs today in spite of rumors that the ‘trade deal’ is in trouble over Trump’s signing of legislation supporting pro-democracy protesters in the Chinese enclave of Hong Kong.
Durable goods also came in at a gain of 0.6% vs a consensus estimate of -0.8%, driving markets higher.
Third quarter gross domestic product for the American economy was revised upwards to 2.1% from a previous reading of 1.9%.
“Outlooks generally remained positive with some contacts expecting the current pace of growth to continue into next year,” wrote the Federal Reserve’s ‘Beige Book’ economic report.
We at CD Media don’t believe the markets are rallying on expectations of a trade deal with the Chicoms but rather with the prospect of Trump’s re-election which looks more and more likely.