Larry Kudlow worked a bit more market-boosting magic this Thursday, following up Wednesday evening’s Dow-rescuing comments with a few more calming words.
Trump’s latest chief economic advisor reiterated his claim that ‘there’s nothing around the corner’, with the recently tariff tit-for-tat set to remain nothing but proposals for ‘a couple of months’. Kudlow also was keen to play up the idea that a trade war isn’t the end goal, arguing that ‘if you tear down barriers and play by the rules, both sides should benefit’.
These words lit a fire under an already red hot rebound. The FTSE widened its gains to 1.8%, lifting it back above 7150; the DAX and CAC were even more excited, surging a ludicrous 2.6% and 2.4% respectively. The dollar was also clearly relieved, jumping 0.3% against the euro to hit a one month high, while against the pound the greenback rose 0.4%, forcing cable back towards $1.40 for the first time in a fortnight.
And what of the Dow Jones? Well, the US index leapt 200 points in the aftermath of Kudlow’s comments, lifting it back across 24450 for the first time in 2 weeks. Even more ridiculously, the Dow is now roughly 1000 points away from its Wednesday’s lows, an astonishing turnaround that has almost single-handedly driven by the White House’s economic advisor.
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