{"id":17089,"date":"2018-09-22T06:48:25","date_gmt":"2018-09-22T06:48:25","guid":{"rendered":"http:\/\/thepatientinvestor.com\/?p=17089"},"modified":"2018-09-22T06:59:19","modified_gmt":"2018-09-22T06:59:19","slug":"east-to-west-trade-tariffs-spark-rally","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/","title":{"rendered":"East to West: Trade tariffs spark rally"},"content":{"rendered":"<p>Commodities rallied and Asian stocks found support after a three-month sell-off.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-09-21-dubs.png?w=525&#038;ssl=1\" alt=\"DJ-UBS Commodity Index\" \/><\/p>\n<p>From Reuters (September 19):<\/p>\n<blockquote>\n<p>Copper jumped to its highest in three weeks on Wednesday, boosted by a weaker dollar after a new round of U.S.-China trade tariffs were not as high as previously expected.<\/p>\n<p>China will levy tariffs on about $60 billion worth of U.S. goods in retaliation for U.S. tariffs on $200 billion worth of Chinese goods. Washington&#8217;s new duties, however, were set at 10 percent for now, rising to 25 percent by the end of the year, rather than starting immediately at 25 percent&#8230;&#8230;.<\/p>\n<p>&#8220;In some ways the bad news had been priced into the markets and, if anything, the news on trade had been slightly less severe than we had thought it would be,&#8221; said Capital Economic analyst Caroline Bain.<\/p>\n<p>&#8220;It&#8217;s still too early to talk about this as sustainable &#8230; it just seems to be a bit of a relief rally after all of the bad news.&#8221;<\/p>\n<\/blockquote>\n<p>The Shanghai Composite Index rallied off primary support at 2650, a slight bullish divergence on the Trend Index signaling short-term buying pressure. Penetration of the descending trendline would suggest that a bottom is forming.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-09-21-ssec.png?w=525&#038;ssl=1\" alt=\"Shanghai Composite Index\" \/><\/p>\n<p>Japan&#8217;s Nikkei 225 is testing its January high at 24,000.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-09-21-n225.png?w=525&#038;ssl=1\" alt=\"Nikkei 225 Index\" \/><\/p>\n<p>India&#8217;s Nifty is testing support at 11,000. Long tails indicate buying pressure. Respect of support would signal another advance.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-09-21-nsx.png?w=525&#038;ssl=1\" alt=\"Nifty Index\" \/><\/p>\n<h3>Europe<\/h3>\n<p>Dow Jones Euro Stoxx 50 rallied off primary support at 3300 but is yet to break the down-trend.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-09-21-stoxx.png?w=525&#038;ssl=1\" alt=\"DJ Euro Stoxx 600 Index\" \/><\/p>\n<p>The Footsie also rallied, finding support at 7250, but a declining Trend Index warns of continued selling pressure.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-09-21-ftse.png?w=525&#038;ssl=1\" alt=\"FTSE 100 Index\" \/><\/p>\n<h3>North America<\/h3>\n<p>The S&amp;P 500 rallied off the new support level at 2875 and is likely to test its long-term target of 3000.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-09-21-spx.png?w=525&#038;ssl=1\" alt=\"S&amp;P 500\" \/><\/p>\n<p>The Nasdaq 100, however, continues to test support at 7700. Breach would warn of a correction to test 7000.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-09-21-ndx.png?w=525&#038;ssl=1\" alt=\"Nasdaq 100\" \/><\/p>\n<p>Canada&#8217;s TSX 60 found support at 950 but declining peaks on the Trend Index continue to warn of selling pressure.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-09-21-tsx.png?w=525&#038;ssl=1\" alt=\"TSX 60 Index\" \/><\/p>\n<p>Markets are dominated by one concern, a US-China trade war, and volatility is likely to remain high until a resolution is found.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Commodities rallied and Asian stocks found support after a three-month sell-off. From Reuters (September 19): Copper jumped to its highest in three weeks on Wednesday, boosted by a weaker dollar after a new round of U.S.-China trade tariffs were not as high as previously expected. China will levy tariffs on about $60 billion worth of &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;East to West: Trade tariffs spark rally&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[41,43,12,17,57,33,34],"tags":[1103,1481,2401,2479,2510,3010,3100,3503],"class_list":["post-17089","post","type-post","status-publish","format-standard","hentry","category-china-hk","category-commodities-gold-commodities","category-india-singapore-countries-regions","category-japan-korea","category-stock-markets","category-uk-europe-countries-regions","category-us-canada-countries-regions","tag-dow-jones-euro-stoxx-50","tag-ftse-100","tag-nasdaq-100","tag-nikkei-225-index","tag-nse-nifty-index","tag-sp-500","tag-shanghai-composite-index","tag-tsx-60"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>East to West: Trade tariffs spark rally - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"East to West: Trade tariffs spark rally - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Commodities rallied and Asian stocks found support after a three-month sell-off. From Reuters (September 19): Copper jumped to its highest in three weeks on Wednesday, boosted by a weaker dollar after a new round of U.S.-China trade tariffs were not as high as previously expected. China will levy tariffs on about $60 billion worth of &hellip; Continue reading &quot;East to West: Trade tariffs spark rally&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-09-22T06:48:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-09-22T06:59:19+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/static.incrediblecharts.com\/images\/2018\/2018-09-21-dubs.png\" \/>\n<meta name=\"author\" content=\"Colin Twiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Colin Twiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/\"},\"author\":{\"name\":\"Colin Twiggs\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/d42b18d516a80149d739845749ac6454\"},\"headline\":\"East to West: Trade tariffs spark rally\",\"datePublished\":\"2018-09-22T06:48:25+00:00\",\"dateModified\":\"2018-09-22T06:59:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/\"},\"wordCount\":337,\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.incrediblecharts.com\/images\/2018\/2018-09-21-dubs.png\",\"keywords\":[\"Dow Jones Euro Stoxx 50\",\"FTSE 100\",\"NASDAQ 100\",\"Nikkei 225 Index\",\"NSE Nifty Index\",\"S&amp;P 500\",\"Shanghai Composite Index\",\"TSX 60\"],\"articleSection\":[\"China &amp; HK\",\"Commodities\",\"India &amp; Singapore\",\"Japan &amp; Korea\",\"Stock Markets\",\"UK &amp; Europe\",\"US &amp; Canada\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/\",\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/\",\"name\":\"East to West: Trade tariffs spark rally - the patient investor\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.incrediblecharts.com\/images\/2018\/2018-09-21-dubs.png\",\"datePublished\":\"2018-09-22T06:48:25+00:00\",\"dateModified\":\"2018-09-22T06:59:19+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/#primaryimage\",\"url\":\"https:\/\/www.incrediblecharts.com\/images\/2018\/2018-09-21-dubs.png\",\"contentUrl\":\"https:\/\/www.incrediblecharts.com\/images\/2018\/2018-09-21-dubs.png\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/22\/east-to-west-trade-tariffs-spark-rally\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/thepatientinvestor.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"East to West: Trade tariffs spark rally\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/thepatientinvestor.com\/#website\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\/2009 and 2020 bear markets well ahead of actual events. He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.","sameAs":["https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/","https:\/\/www.instagram.com\/colin_thepatientinvestor","https:\/\/au.linkedin.com\/in\/colintwiggs"],"url":"https:\/\/thepatientinvestor.com\/index.php\/author\/investor\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9tQ4n-4rD","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":18191,"url":"https:\/\/thepatientinvestor.com\/index.php\/2019\/05\/11\/sp-500-no-deal\/","url_meta":{"origin":17089,"position":0},"title":"S&#038;P 500: No deal","author":"Colin Twiggs","date":"May 11, 2019","format":false,"excerpt":"It looks like there will be no trade deal any time soon. \"Trade talks between China and the United States ended on Friday without a deal as President Trump raised tariffs on $200 billion worth of Chinese imports and signaled he was prepared for a prolonged economic fight..... Trump is\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17014,"url":"https:\/\/thepatientinvestor.com\/index.php\/2018\/09\/08\/east-to-west-bonds-tariffs-hurt-crude-prices-and-developing-markets\/","url_meta":{"origin":17089,"position":1},"title":"East to West: Bonds &#038; tariffs hurt developing markets and crude prices","author":"Colin Twiggs","date":"September 8, 2018","format":false,"excerpt":"10-Year Treasury yields are consolidating in a triangle below long-term resistance at 3.00 percent. Breakout above 3.00 would signal a primary advance, ending the decades-long bull market in bonds. This would have a heavy impact on developing economies, including China, with a stronger Dollar forcing higher interest rates. A Trend\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":62235,"url":"https:\/\/thepatientinvestor.com\/index.php\/2025\/08\/06\/tariffs-the-good-the-bad-and-the-ugly\/","url_meta":{"origin":17089,"position":2},"title":"Tariffs &#8211; the good, the bad, and the ugly","author":"Colin Twiggs","date":"August 6, 2025","format":false,"excerpt":"Key Points US tariff receipts rose to $29.6bn in July The June trade deficit with China fell to the lowest in more than twenty years However, the ISM Services PMI reports declining employment The report also highlights soaring prices as tariffs take effect And large manufacturers warn of rising costs\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"BEA: Trade Deficit","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-08-05-kobeissi-tariffs.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-08-05-kobeissi-tariffs.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-08-05-kobeissi-tariffs.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":57745,"url":"https:\/\/thepatientinvestor.com\/index.php\/2024\/09\/25\/currency-wars-on-the-horizon\/","url_meta":{"origin":17089,"position":3},"title":"Currency wars are bullish for gold","author":"Colin Twiggs","date":"September 25, 2024","format":false,"excerpt":"The US Dollar broke long-term support at 7.06 against the Chinese Yuan last week after the Fed confirmed it was cutting interest rates. Follow-through below 7.00 against the Yuan would confirm a Dollar bear market. Within days, China announced new measures to support its economy: - Lowering rates on existing\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"Chinese Yuan","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-09-24-cny.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-09-24-cny.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-09-24-cny.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":61267,"url":"https:\/\/thepatientinvestor.com\/index.php\/2025\/03\/02\/trump-and-tariffs\/","url_meta":{"origin":17089,"position":4},"title":"How tariffs could break America","author":"Colin Twiggs","date":"March 2, 2025","format":false,"excerpt":"\u201cTo me, the most beautiful word in the dictionary is tariff....it\u2019s my favorite word.\" ~ Donald Trump, October 2024 Americans' experience with tariffs is mixed. The Smoot-Hawley tariffs of the 1930s prompted retaliatory tariffs and trade barriers from trading partners, causing a collapse in international trade that badly hurt US\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"US Monthly Trade Deficit (billions)","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-03-01-tradedeficit.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-03-01-tradedeficit.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-03-01-tradedeficit.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":16155,"url":"https:\/\/thepatientinvestor.com\/index.php\/2018\/04\/09\/trade-wars-playing-hardball-with-china\/","url_meta":{"origin":17089,"position":5},"title":"Trade Wars: Playing hardball with China","author":"Colin Twiggs","date":"April 9, 2018","format":false,"excerpt":"Remember North Korea and the imminent nuclear war? With leaders trading insults on Twitter and bragging: \"My nuclear button is bigger than yours.\" It may resemble a WWF arena more than international diplomacy but that is how Donald Trump conducts foreign affairs. The current Twitter war over trade tariffs is\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/17089","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=17089"}],"version-history":[{"count":2,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/17089\/revisions"}],"predecessor-version":[{"id":17091,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/17089\/revisions\/17091"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=17089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=17089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=17089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}