Will Dow Rally? Top Milken Economist Says China ‘Desperate’ to End Trump’s Trade War

Joseph Young
Updated
dow jones us stock market us-china trade war
dow jones us stock market us-china trade war

According to Bill Lee, chief economist at the Milken Institute, China is desperate to land a trade deal with the U.S. and President Donald Trump to prevent more crippling defaults. That could be bullish for the Dow Jones Industrial Average and other U.S. stock market indices.

The Dow Jones has already recovered in the past week due to rising optimism towards a trade deal, though it is trading in the red on Thursday. The struggle of corporate China could push the optimism further, allowing the Dow Jones to maintain its momentum throughout the week.

china economy
china economy

Source: Nikkei.com

As businesses in China continue to see an increase in defaults, given that insolvencies are projected to hit 20% this year, Bill Lee emphasized that the government will push for a deal with the U.S.

Read the full story on CCN.com.