Foreign $ investors are key

There are signs that more realistic tariff policies are emerging. This should lead to a relief rally in US securities and take some short-term pressure off the dollar.

Clearly, the quiet exemption from Trump’s tariffs of electronic goods manufactured in China is excellent news and will lead to a rally in US tech stocks led by Apple when markets open tomorrow. Additionally, signs that Russian American negotiations over Ukraine are progressing out of the public eye illustrate that Trump may say one thing, but his officials are now finding ways to pursue more realistic policies.

But will this be enough to persuade foreign holders of US financial assets and dollars to stop selling?