“Everyone Wins In A Trade War”? Stocks, Bonds, Dollar All Soar After Tariff Tantrum

By Tyler Durden

“No one wins a trade war” they said… Well for now, everyone is winning – US, Chinese, and European stocks are up; the dollar is stronger; and the long-bond is up…

Bonds and Stocks are bid post-Trade-War-Tantrum…

For now Russia is winning the trade war (if stock markets matter)

Chinese Stocks love Trade Wars…

European Stocks love Trade Wars (apart from Spain and Italy)…

US Stocks love Trade Wars…

Bloomberg offers a few explanations as to why the market seems unfazed by the trade war:

1. Investors are betting that cooler heads will prevail

2. The direct impact of tariffs is not enough to have drastic economic consequences. We are talking about 10% taxes on $200 billion imports in a $19 trillion economy. There will be winners and losers, but the aggregate impact is small

3. Political uncertainty matters less than you think.

And while uncertainty soars, VIX tumbled…

And then there’s this – ignorance is bliss…

US equities had their best week in over a month as algos BTFTWD!! Small Caps ended the week red though…

Source:: Zero Hedge

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