Late Tuesday, the NYSE said it is now reconsidering proceeding in delisting 3 major Chinese telecoms after Treasury Secretary Steven Mnuchin criticized its decision 18 hrs ago to grant the companies a reprieve.
The NYSE’s pivot follows 18 hrs in which the exchange caught the White House and Treasury officials off guard.
The back-and-forth sowed confusion within global financial markets about the policy that set off the remarkable chain of events: an order signed by President Donald Trump in November that requires investors to unload Chinese businesses deemed a threat to US national security.
Secretary Mnuchin entered the act Tuesday, calling NYSE Group Inc.(NYSE:ICE) President Stacey Cunningham to express his displeasure with the exchange’s decision to let China Mobile Ltd., (NYSE:CHL), China Telecom (NYSE:CHA) and China Unicom Hong Kong Ltd (NYSE:CHU) keep trading on the Big Board. Also involved in the administration’s response were Chief of Staff Mark Meadows, NSA Robert O’Brien and National Economic Council Director Larry Kudlow.
In the final trading on the day saw $3.5-B in collective market value pared from the 3 after each had rallied on the expectation of at least a temporary respite from President Trump’s order.
NYSE and Treasury spokespersons declined to comment.
Laid out in President Trump’s November executive order, is that many Chinese companies have links to China’s military and pose a threat to American national security.
Tuesday, the benchmark US stock market indexes finished at: DJIA +167.71 at 30391.54, NAS Comp +120.51 at 12818.96, S&P 500 +26.21 at 3726.86
Volume: Trade on the NYSE came in at 995-M/shares exchanged.
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish with a Very Bullish bias.
- Russell 2000 +0.2% YTD
- NAS Comp -0.5% YTD
- DJIA -0.7% YTD
- S&P 500 -0.8% YTD
Looking Ahead: Investors will receive the ADP Employment Change Report for December, Factory Orders for November, the IHS Markit Services PMI for December, and the weekly MBA Mortgage Applications Index Wednesday.
Have a healthy day, Keep the Faith!