Unlock the White House Watch watch newsletter for free
Your guide on what Trump's second term for Washington, Business and the World means
Wall Street's actions have rallied and oil prices climbed on Tuesday while the US secretary to the US Treasury said that a trade war with China was “unbearable”.
Scott Bessent told investors at a conference organized by JPMorgan that he expected that the two countries would conclude an agreement at some point, people familiar with his comments said.
He said the high prices that the United States and China imposed on other imports represents what was in fact commercial embargoes and added that the status quo was “unbearable”. Bessent also said that President Donald Trump was not trying to decline from China.
Trump imposed a 145% tariff on goods from China, while Beijing responded with reprisals that Total of 125%.
The actions, which had increased upon a sale during the previous session, climbed further on the comments of Bessent, which were first reported by Bloomberg, although they abandoned some earnings in the afternoon.
The Blue Chip S&P 500, which lost more than 10% this year, closed 2.5% more Tuesday, while the heavy technological Nasdaq composite added 2.7%. The two clues fell strongly on Monday On fears, the president could dismiss the president of the federal reserve Jay Powell.
The American dollar index, which follows the currency against a basket of six international peers, increased by 0.7%. In the public debt markets, treasury yields at 10 and 30 years old have decreased modestly as inflation expectations have withdrawn. Bond yields come opposite prices.
In the raw materials markets, Brent Crude, the international oil reference index, increased by 1.5% to $ 67.27 per barrel on the hope that the worst aspects of a world trade war could be avoided.
Gold, an asset from Haven who reached a record of $ 3,500 by the Troy Once Tuesday, remote 1.4% at $ 3,375.
Earlier in the day, John Paulson, the Millionaire and Somino H Hedesty fund manager, concluded an agreement of $ 1 billion alongside Novagold Resources for an Alaska gold project.
“The general level of uncertainty, both economically and politically, leads to the price of gold,” Paulson told Financial Times.
“I think this trend will continue, that gold will become the alternative reserve currency,” he added. “And it is not only among central banks, but also for individuals, who do not want to face the risk of confiscation, currency controls or devaluation given inflation.”
Although Bessent has expressed its optimism about what an agreement with China was concluded at some point, he warned that there was no diplomatic negotiations between the countries to end the trade war.
However, two people familiar with his remarks said that there was no sign that Beijing and Washington were about to find a solution and that the markets were reading too much in his comments.
One person said he was not clear if Trump agreed with his secretary to the treasury. The White House and the Treasury did not respond to requests for comments.
Asked about the comments during a White House press briefing, Karoline Leavitt, the press secretary, said Trump thought that the United States “went very well with regard to a potential trade agreement with China”.
But people familiar with the situation in Washington and Beijing stressed that there were no talks between the capital to resolve the dispute. China has clearly told the White House that it considers its approach to prices as a form of intimidation and will not cap.
“Everything is a message to keep the markets together while these negotiations are underway,” said Steven Blitz, US chief economist at TS Lombard. “Bessent says an obvious fact.”
