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Home / Business / Shares rally as Trump delays tariffs – Cramer and others weigh in

Shares rally as Trump delays tariffs – Cramer and others weigh in



Shares met on Thursday after President Donald Trump gave "small concessions" to China by postponing US $ 250 billion in Chinese goods tariffs until the latter half of October.

Trump's "gesture of benevolence" follows a previous move from Beijing to exempt 16 types of US products from additional tariffs.

Markets also received a boost after the European Central Bank cut the deposit rate and started a bond buying program.

Three experts distribute what comes next.

Jim Cramer, host of CNBC's "Mad Money," said Trump is pushing for the Federal Reserve to mirror the ECB's latest actions.

"I think Europeans should be careful. The president is not a supporter of [Angela] Merkel, the president is not a supporter of how Europeans have handled their car tariffs and they may be the next. If they continue to do so the euro will be wiped, they should be very careful I think the president is itching for something against them … I don't thin k he will call [ECB President Mario] Draghi a bonehead because he wants our Fed boss to do exactly what Draghi does and just stick The problem is that they have no growth whatsoever, so they have to do something. We have some growth. "

Jim Paulsen, chief investment strategist at Leuthold Group, said the bond market is in a prime position to stimulate more gains in the US stock market.

"There are some other good things going on here. I think not only the good trading news, but the fact that bond yields have shown a tendency to rise again shows a great confidence vote coming from the bond market, which is also healthy for Even this morning, there is still a very close relationship between the direction of the 1

0-year return and the direction of the stock market, and economic surprise indices around the world have picked up, and they certainly have this in the United States, but they also have [picked up] in the emerging world, in China and Europe, so the kind of healthy economic upswing is starting to cause the downturn to dread a little, so I think it's more than just about the trade news. … We might start with a small change in character, not just in bond yields, but also in stock market leadership. "

Sameer Samana, global equity and technical strategist at the Wells Fargo Investment Institute, said the market is not as bearish as inve The big ones expected, but it's still worth it to be justified.

"At least on an expectation basis, it is now clear to say that people were probably a bit too" bear up. "We were also there in the fourth quarter of last year, and the way expectations work in the end is beginning to change. Unfortunately, the difficult part is that you still have a lot of headwinds; many PMIs [purchasing managers’ indexes] and a lot of business confidence are still very low, small business confidence … ticked off, consumer confidence has started to roll over a bit, so we will probably be more in the cautious camp.There are some good things happening, but the market is also 200 points of lower levels and you have a return of about 30 basis points higher, which has been the moves in April and July, which corresponds to that, and we would say that at this point in time, it's probably a good time to rein in some of that stock exposure, and maybe at least look at some of the the longer interest rate instruments. "

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