Time for some big market moves
For years after the financial crisis, the trading world wanted to be flat into the weekend because of the scars of massive gaps on unforeseen news.
Trump dropped a similar hammer this weekend and anyone who was caught short VIX futures is in a world of pain today with the VIX up almost 40%.
Elsewhere it's a mixed picture with S&P 500 futures down 47 points to 2900 following a 28 point rally on Friday.
It was much worse in China where the Shanghai Composite fell a whopping 5.6%.
Oil is an interesting one. It fell nearly $2 but has pared that to a decline of 55-cents. The bond market also isn't overly flummoxed with yields down 2.5-4 bps across the US curve.
A big part of the thinking is that Trump is bluffing.
Trump's threat to hike tariffs is "a standard part of his negotiating style and we remain bullish on the prospects for a deal in the coming weeks," wrote Compass Point's Isaac Boltansky in a note. Though there "will be puts and takes in this story," he believes "pressure on both sides of the Pacific will ultimately catalyze a deal."
Here are some other analyst takes.
