White House Corrects Lockdown, Trade Deal Narrative, Markets Bounce, Move Higher

June 23, 2020

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White House Corrects Lockdown, Trade Deal Narrative, Markets Move Higher — White House Economic Advisor Larry Kudlow
Screenshot CNBC

After White House Trade Negotiator Peter Navrro on national TV overnight replied to an interview question on Fox News regarding the trade deal's status, markets went into a 400 point sell-off.

“It’s over. Yes", replied Navarro when asked if certain aspects of the deal have fallen apart.

It didn't take long for The White House to correct that narrative, and the prospect of another 'lockdown' as well.

Speaking with Fox Business, the senior economic adviser Larry Kudlow said that there would "absolutely, definitely" not be a second national lockdown, reported Zero Hedge.

The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!
— Donald J. Trump (@realDonaldTrump) June 23, 2020

Markets turned around on the corrections and ended in positive territory for the day.

Economic data showed continued recovery and strong new home sales in May.

Markit Manufacturing PMI (Jun) PREL printed at 49.6 vs 48 consensus estimate.

Markit Services PMI (Jun) PREL printed at 46.7 vs 46.5 estimate.

Markit PMI Composite (Jun) PREL printed at 46.8.

Richmond Fed Manufacturing Index (Jun) printed at 0 vs -41 estimate.

New Home Sales (MoM) (May) printed at 0.676M vs 0.64M estimate.

New Home Sales Change (MoM) (May) printed at 16.6% vs 3.5% estimate.

Author

CDM Staff

The mission at Creative Destruction Media is to be the catalyst for the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one."