The Trump Effect: Trade Deficit Falls as Exports Hit 2-year Highs

The Trump Effect: Trade Deficit Falls as Exports Hit 2-year Highs

The Trump Effect: Trade Deficit Falls as Exports Hit 2-year Highs

$DIA, $SPY, $QQQ, $VXX

The US trade deficit fell more than expected in February as exports increased to a 2 year high and slowing domestic demand weighed on imports.

The narrowing in the trade gap comes as The Trump Administration is pushing ahead with its agenda for fair trade and bringing back manufacturing jobs to the United States as it seeks to boost economic growth.

The US Commerce Department said Tuesday the trade deficit declined 9.6% to $43.6-B.

January’s trade shortfall was revised down to $48.2-B from $48.5-B.

The US-China trade deficit dropped 26.6% to $23.0-B in February.

The decline in the US-China trade deficit comes ahead of Chinese President Xi Jinping’s visit later this week. US President Donald Trump has declared China the “Grand Champions” of currency manipulation.

However, there has been a change in the Fx market tide that “kinks” in the United States’ argument that China is keeping its currency artificially low against the USD, as the RMB Yuan has been rising against the American currency

Economists polled had forecast the trade gap falling to $44.8-B in February.

Adjusted for inflation, the deficit decreased to $59.7-B, with exports of goods the highest on record as an earlier drag from a strong Buck fades. The real trade deficit was $65.1-B in January.

 

The US government is eyeing trade as a vehicle to lift annual economic growth to 4% and boost the manufacturing sector.

Last Friday, President Trump ordered a study into the causes of US trade deficits and a clamp-down on import duty evasion.

President Trump also wants to renegotiate the North American Free Trade Agreement (NAFTA), which was signed in Y 1994 by the United States, Canada and Mexico.

Tuesday, the US major stock market indexes finished at: DJIA +39.03 at 20689.79, NAS Comp +3.93 at 5898.62, S&P 500 +1.32 at 2360.15

Volume: Trade on the NYSE came in at 982-M/shares exchanged

  • NAS Comp +9.6% YTD
  • S&P 500 +5.4% YTD
  • DJIA +4.7% YTD
  • Russell 2000 +0.7% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Neutral (0.16) Neutral (-0.15) Neutral (0.12) Very Bullish (0.50)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (0.21) Neutral (-0.17) Neutral (0.21) Very Bullish (0.58)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Very Bullish (0.51) Bullish (0.46) Bullish (0.48) Very Bullish (0.58)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bearish (-0.35) Bearish (-0.25) Bearish (-0.47) Bearish (-0.33)

Stay tuned…

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