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Home / Business / Trump lied about the trade war to boost stock markets – his bluster may soon begin to fall on & # 39; deaf ears & # 39;

Trump lied about the trade war to boost stock markets – his bluster may soon begin to fall on & # 39; deaf ears & # 39;



  President Donald Trump talks to reporters when he goes to Marine One at South Lawn of the White House, Friday 23. August 2019 in Washington. Trump is on his way to the G-7 summit in France. (AP Photo / Alex Brandon) Associated Press

  • CNN reported Wednesday that Trump may have made high-level phone calls to China to boost markets.
  • Trump said his administration had spoken to China, but his aides say he intended to expand the markets with the comments.
  • And China said the talks never happened.
  • "I already think we are less responsive to these kinds of claims," ​​said Craig Erlam, senior market analyst at Oanda.
  • See Markets Insider's website for more stories.

On Monday, Trump told reporters he had "loud conversations" with China about the trade war, adding "this is the first time I've seen them where they really want to make a deal."

Global shares immediately reversed what appeared to be another day of heavy losses, following Dow's 600-point decline earlier Friday. His comments reassured anxious investors.

But China said these conversations never happened. And CNN reported that: "Instead, two officials said Trump was eager to project optimism that could boost markets and discourage comments from China's premier Chinese-language communications awards."

A Ll leaders want the markets to do well, and exaggerating successes and gains is hardly a tactic exclusive to Trump. But the markets are currently in a particularly precarious state, with several red flags warning of a potential recession. And traders may be beginning to wonder how long they can afford to play along with Trump's optimism.

"I already think we are less responsive to these types of allegations, but not quite," Craig Erlam, Oanda's senior market analyst, told Markets Insider in an email. "As always with these things, it's hard to tell the difference between truth, lies and exaggeration. Markets will often give more credibility to reports that have come from credible sources or been confirmed, but there are circumstances like this when we again guess. "

So it may not be long before traders stop playing to Trump's optimism ̵

1; Erlam added: "It's hard to say how long it will last, but the more his claims are verified or rejected, the more they will fall on deaf ears. "

The trade war also shows no signs of slowing down, no matter what Trump says. That's why Trump's "rhetoric" should be viewed "with the utmost caution," Han Tan, a market analyst at FXTM, said in an email to Business Insider on Monday when markets met on Trump tweets.

"Investors are well aware that several rounds of trade talks have only led to the current bleak situation, where repeated customs threats have become the norm."

See more: Trump may have drafted & # 39; high level & # 39; Chinese Phone Calls at the G7 Summit to Boost Demolished Markets


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