Mon, July 01, 2019
Equities rose in the second quarter despite rising trade tensions with China and slowing economic growth in much of the world. President Donald Trump’s threat in May to impose additional tariffs on Chinese goods and to place China’s Huawei Technologies on a Commerce Department “blacklist” caused a temporary pullback in equities. The Fed came to the rescue, at least temporarily, by signaling that their next move would likely be a rate cut. The “dovish” signal from the Fed and hopes that the G-20 Summit meeting between U.S. President Donald Trump and Chinese leader Xi Jinping would ease tensions between the two countries fueled a rebound in equities and bonds in the final weeks of the quarter.