Eh, What's Up Doc? US-China Trade Truce Sends Markets Hopping!

Of Course There's a Trade!

Well what do we have here? It seems the US and China have decided to play nice… for now. They've struck a deal to temporarily chop down those pesky tariffs. From over 100% to just 10%! That's lower than my carrot consumption on a Tuesday. The Trump administration is still keeping some tariffs on fentanyl related stuff so America's total tariffs on Chinese imports will be about 30% during this 90 day pause. As Yosemite Sam would say "Great horny toads!" That's still a hefty chunk but hey it's better than a skunk at a picnic right?

Markets Go Wild – Almost as Wild as a Tasmanian Devil!

You wouldn't believe it folks! The stock markets in Europe and Asia started hopping like I do when I smell fresh carrots after this news broke. Germany's DAX hit a 1 year high! Hong Kong stocks jumped! Even on Wall Street they were painting the town red white and blue – mostly green though 'cause that's the color of money you see? Nasdaq futures shot up S&P 500 futures climbed and the Dow Jones Industrial Average futures gained some serious ground. It was a regular party! But remember folks don't go betting your whole carrot patch on this just yet.

Risk On Dude! Cowabunga!

Experts are saying this deal could bring back that 'risk on' feeling which is fancy talk for "everyone's feeling brave and ready to invest." Stocks and U.S. assets might just get a boost. One fella from JPMorgan Asset Management Tai Hui called it better than expected but he's still a bit nervous about the details. He thinks three months might not be enough time to hammer out all the kinks. "The 90 day period may not be sufficient for the two sides to reach a detailed agreement but it keeps the pressure on the negotiation process," he said. And I say 'Eh what's the rush? We've got plenty of time to nibble on carrots and watch how this all unfolds!'

Good Ol' American Dollar – Makin' a Comeback Eh?

Remember when everyone was saying "Sell America!"? Well this deal might just put a cork in that. According to some bloke at Mizuho Bank this is 'much better news than expected'. The U.S. dollar those Treasury notes and even those stocks had a bit of a wobble lately but now the dollar is bouncing back like me after a close encounter with Elmer Fudd. The U.S. dollar index is up and the yield on the 10 year Treasury note is also climbing. Keep calm and carrot on!

Lowering the Tariff Wall – Not Quite Invisible But Still...

This whole 90 day shindig is bringing the effective U.S. tariff rate down significantly according to some smart folks. This means that pesky tariff wall has been lowered making it easier for everyone to trade. And it could even make other countries want to get a similar deal with the US! Now that's what I call a 'harmonizing force'! This is indeed despicable!

Bullish is the New Black… or Orange If You're a Carrot!

Those Wall Street wizards think stocks could keep on climbing! One analyst from Barclays Emmanuel Cau said there's still plenty of room for things to get even better! Meanwhile the brainiacs at Deutsche Bank are so excited they're expecting U.S. stocks to outrun their European rivals in the short term. Stay bullish! Step back into sectors exposed to China tariffs like Autos Health Care and Chips! So grab your carrots folks and get ready for a wild ride. After all life is one long road and you should travel it with carrots!