Markets Say Most of the Bad News on Trade Is Already Out There
- Rebound in equities comes after worst day in four months
- Talks to continue as next round of tariffs remain far off
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The bad news is that China and the U.S. are busy slapping tariffs on each other. The good news for now is that investors seem to think that’s about as far as it will go.
U.S. stocks rebounded Tuesday from the worst sell-off in four months, while European indexes advanced as investors bet China and the U.S. will eventually reach a deal. Treasuries, gold and the yen retreated as the clamor for havens eased off. The reversals come with a dash of speculation that the rout in risk assets had gone too far too quickly.