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Home / Business / Trump lied about the trade war to stimulate the stock markets – his romp could soon be "deaf"

Trump lied about the trade war to stimulate the stock markets – his romp could soon be "deaf"



  President Donald Trump talks to reporters as he heads to Marine One on the south lawn of the White House in Washington on Friday, August 23, 2019. Trump is on his way to the G7 summit in France. (AP Photo / Alex Brandon) Associated Press

  • On Wednesday, CNN reported that Trump may have been conducting high-level phone calls to China to boost markets.
  • Trump said his government had spoken with China, but his aides said he intends to boost markets with the comments.
  • And China said the calls were never made.
  • "I think we are already less responsive to these kinds of claims," ​​said Craig Erlam, senior market analyst at Oanda.
  • You can find more articles on the homepage of Markets Insider.

On Monday, Trump told reporters that he had "high-level talks" with China over the trade war, adding, "This is the first time I've seen them where they really want to make a deal."

Global stocks immediately reversed another day of heavy losses after the Dow fell 600 points last Friday. His comments calmed anxious investors.

But China said that these talks never really took place. And CNN reported that: "Instead, two officials said Trump strives to project optimism that could spur markets, and to reconcile the comments of China's vice president with Chinese direct communication."

A ll leaders want their markets to perform well, and overdoing achievements and victories is hardly a tactic that only Trump offers. However, markets are currently in a particularly precarious state, with several red flags warning of a possible recession. And traders may wonder how long they can afford to play with Trump's optimism.

"I already think we are less responsive to these kinds of claims, but not quite," said Craig Erlam. Senior Market Analyst at Oanda to Markets Insider in an email. "As always with these things, it's difficult to distinguish between truth, lies, and hyperbole, markets will often give credibility to reports that come from credible sources or have been verified, but there are circumstances like these when we need to guess."

It could not be long before traders cease to acknowledge Trump's optimism ̵

1; Erlam added, "It's hard to say how long that will last, but the more his claims are not confirmed or denied, the more they fall on deaf ears. "

Even the trade war shows no signs of easing, no matter what Trump says. That's why Trump's "rhetoric" should be treated with "extreme caution," Han Tan, market analyst at FXTM, said in an e-mail to Business Insider on Monday, as markets rebounded on the Trump tweets.

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

More information: Trump may have made high-level Chinese calls at the G7 summit to boost markets


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