'Big Tailwinds for the Bull Market Are China and Spending,' Says Analyst

While ongoing trade negotiations between the U.S. and China have the capital markets eagerly anticipating a tangible trade deal, stimulus measures by the Chinese government to prop up the domestic economy are starting to take its effect.

A mix of Chinese stimulus measures have been providing the fodder for economic growth, such as lower taxes, no corporate tax breaks, monetary policy adjustments, and more market access for foreign companies to set up shop. All in all, Wall Street is looking at the Chinese government’s latest efforts as a plus for its economy and a boon for China ETFs.

In the meantime in the U.S., the Labor Department said that 20,000 jobs were added in February, falling well below a Dow Jones poll of economists who were expecting 180,000. It marked the weakest month of job creation since September 2017, stoking more fears of a global economic slowdown.

In spite of the latest jobs numbers, White House economic advisor Larry Kudlow said that the U.S. economy is still on pace to realize a 3 percent gain. Furthermore, analysts and economists have been quick to point out that government data has been inconsistent since the 35-day shutdown, which delayed the release of data.

In the video below, S&P Dow Jones Senior Index Analyst Howard Silverblatt looks at the 10 year market and whether or not it can continue.

For investors looking for continued upside in U.S. equities over international equities, the Direxion FTSE Russell US Over International ETF (NYSEArca: RWUI) offers them the ability to benefit not only from domestic U.S. markets potentially performing well, but from their outperformance compared to international markets.

Conversely, if investors believe that international markets will outperform U.S. domestic markets, the Direxion FTSE International Over US ETF (NYSEArca: RWIU) provides a means to not only see international markets perform well, but a way to capitalize on their outperformance compared to the U.S. markets.

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