OAN Newsroom
UPDATED 7:03 AM PT — Tuesday, August 27, 2019
U.S. shares reverse last week’s losses, following President Trump’s
statement that China wants to make a deal on trade. During the trading
session on Wall Street Monday, all three major indices rose more than
one-percent each amid thin trading volumes.President Trump said he received two “very good calls” from Beijing on Monday, which was a positive sign for investors. Last week, the president decided to slap 30-percent tariffs on all Chinese imports, which led stocks to drop and fueled speculation about a possible recession.
Experts say investors are overreacting to the trade tensions with China.
“One thing we’ve learnt over the last couple of months is that it moves ones day, it move up the other day, it moves down…the reality is this is not a trade war — this is a geopolitical rivalry between two great geopolitical and economic powers, and it’s going to be with us for the next 5 or 10 years,” stated Burkhard Varnholt, deputy chief investment officer for Credit Suisse.
Meanwhile, several investment banks have advised their clients to buy gold and other safety assets to decrease their exposure to trade risks going forward.
