In today’s recap we cover some of the news that affected the market the most like the preliminary trade deal between China and the U.S.
U.S. recession concerns are easing now that the Treasury yield curve is no longer inverted. It has been a reliable bond-market harbinger of past economic downturns. However, markets are still divided on whether a recent steepening of the curve points to brighter economic prospects, or remains an indication that the U.S. is still rushing headlong, into a downturn given the overall slowing global economy.
Also, Trump announced this week a substantial phase 1 deal with China that, he says, includes a commitment to buy $40B-50B per year of U.S. agricultural products & agreements on intellectual property & financial services. Prices of soybeans, hogs & cotton have since rallied. China remains the world’s top consumer of all 3 commodities.