Rise after Trump predicts a great deal with China
For what it is worth, Pres. Trump predicts a great deal with China on trade and that has helped to reverse losses in the Shanghai index which is now up 1.10%. The CSI 300 is also higher and is up by 1.15%
With the clock ticking to the mid-term elections, a falling stock market is certainly not what the Pres. wants or needs. So expect him to say anything and everything until Election Day on November 6th.
Having said that, China is certainly not in a hurry to do a "great deal" before the elections.
However, markets are oversold. The CSI300 is down near 30% from the highs of the year and 23% from the end of 2017 and the Shanghai composite is down 22.5%. So there can be a short covering rally at any time. The question is "Will the market fall for the pump? or "Is the market now immune to the words?"
