US says conflict & a Chinese blockade of Taiwan trade would spark $2.5tn in economy losses

Seeing this item doing the rounds. Hopefully not imminent but something to be aware of!

  • The US state department has shared research with partners and allies that estimates that a Chinese blockade of Taiwan would spark $2.5tn in economic losses, according to six people familiar with the material, which was commissioned from the research firm Rhodium Group.
  • The stark warning has been shared with European Commission and European government officials

The link is here to the piece, and I’ve seen something similar in the Financial Times (gated).

Major US indices have a huge day higher as CPI inflation comes in lesson expectations NASDAQ index rises by 7.35%

  • Dow industrial average rose 1201.43 points or 3.7% had 33715.36
  • S&P index rose 207 22 points or 5.54% at 3956.38. The index closed above its 100 day moving average at 3901.
  • NASDAQ index was the biggest gainer with a 760.98 point rise or 7.35% at 11114.16
  • Russell 2000 rose 107.52 points or 6.11% at 1867.92.

It is a great move. It is the largest move higher since the pandemic. There is room to roam, but understand that there may come a day where it realized that it still rose 0.4% for the month. That inflation is still well above the 2% target for both the headline and the core.

However, enjoy it while you can and look for higher levels to potentially sell (like the 200 day MA).

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