Wed, 23 Sep 2020

NEW YORK, New York - U.S, stocks rebounded on Wednesday as President Trump back-flipped again on comments about progress on U.S.-China trade talks.

The U.S. dollar fell sharply.

If inside traders are tapped into the U.S. president's mind they must be making a packet. Only on Tuesday, Mr Trump pondered whether a trade deal would be concluded this side of the November 2020 presidential elections.

On Wednesday in London, talking to reporters at a NATO meeting, he was beating a different drum. "Discussions are going very well and we'll see what happens," he said.

The Reuters.com markets headline said it all: 'Wall Street bounces back on renewed trade optimism.'

One analyst however was not buying into the obsession on the trade talks. Doug Cote, senior portfolio manager at Voya Investment Management in New York, says the underlying market fundamentals are more in play.

"Anything that happens on any day is because of trade, but it's a much richer mosaic underneath," Cote told the Reuters Thomson news agency Wednesday. "The consumer's on fire. That's what's behind the resilience in the market and this will be the best holiday season on record."

"Everyone sees this trade battle as World War Three, and it's not," he said.

Regardless stocks roared back to life. The Dow Jones Industrial Average gained 146.97 points, or 0.53%, to 27,649.78.

The Standard and Poor's 500 added 19.57 points, or 0.63%, to 3,112.77.

The Nasdaq Composite advanced 46.03 points, or 0.54%, to 8,566.67.

The U.S. dollar was caned with the British pound soaring to a multi-month high of 1.3109. The euro was solidly in demand at 1.1082. The Japanese yen traded at 108.86. The Swiss franc firmed to 0.9884.

The Canadian dollar jumped to 1.3185. The Australian dollar added a half cent to 0.6852.

The New Zealand dollar rose to 0.6546.

In overseas markets stocks were also with the bulls. In London the FTSE 100 rose 0.42%. The German Dax added 1.19%. The Paris-based CAC 40 climbed 1.27%.

On Asian markets, the Australian All Ordinaries fell a further 104.00 points or 1.53% on Wednesday to close at 6,714.40.

The Nikkei 225 fell 244.58 points or 0.98% Wednesday, to close at 26,133.26.

China's Shanghai Composite lost 6.58 points or 0.23% to 2,878.12.

In Hong Kong, the Hang Seng dived 328.74 points or 1.25% to 26,062.56.

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