The latest U.S. tariffs on Chinese goods went into effect on Sunday, but President Donald Trump said scheduled trade talks set to take place in September are still on the docket. Any sliver of positive news from the trade talks could certainly benefit U.S. equities, which have been sensitive to the latest trade war news.
“We are talking to China, the meetings in September, that hasn’t changed,” Trump told reporters Sunday on the White House South Lawn after returning from Camp David.
The news comes after President Trump also said that these scheduled talks will take place at a “different level.”
“There’s a talk scheduled for today at a different level,” Trump said in an interview with Fox News Radio without elaborating on what “a different level” means.
Let’s See Where This Goes
“Let’s see what the end product is; that’s what you have to judge it by,” Trump said.
Trade tensions took a turn for the worse last week when both the U.S. and China barraged each other with new tariffs. However, China did soften its stance by saying it’s willing to resolve the trade war with a “calm attitude.”
“China has plenty of means for countermeasures, but under the current situation, the question that should be discussed right now is about removing the U.S.′ new tariffs on $550 billion in Chinese goods to prevent escalation of the trade war,” said Gao Feng, spokesman for China’s Ministry of Commerce.
Investors looking to play the trade wars can look to relative value exchange-traded funds (ETFs) that focus on U.S. and international equities.
For investors who may be sensing 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.
RWUI features:
- Seeks investment results, before fees and expenses, that track the Russell 1000®/FTSE All-World ex-US 150/50 Net Spread Index (the “index”).
- The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in securities that comprise the Long Component of the index or shares of exchange-traded funds (“ETFs”) on the Long Component of the index.
- The index measures the performance of a portfolio that has 150% long exposure to the Russell 1000® Index (the “Long Component”) and 50% short exposure to the FTSE All-World ex-US Index (the “Short Component”).
For investors sensing 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.
For more relative market trends, visit our Relative Value Channel.