US stocks surge sharply while Yen dives after US Trade Representative announced to delay new tariffs on some Chinese products to December 15.
The 10% tariffs on approximately USD 300B of Chinese products will still take effect on September 1. However, certain products are removed from the list based on “health, safety, national security and other factors”.
Also, tariffs on products including cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing, will be delayed to December 15.
DOW rises strongly after the release and is currently up more than 1.5%. Though, sustained break of 55 day EMA (now at 26500, is needed to be the first indication of near term reversal. Otherwise, further decline will remain in favor through last week’s low of 25440.39.