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An Event Study: Trade Truce-Part 1, or Not?

Summary:
See if you can find when Trump makes his statement about trade negotiations with China. Winning! Here is the Dow Jones, 5 minute increments. Clearly, Mr. Trump’s statement had an afterhours impact. Source: barchart.com accessed 12/3/2019 2:15pm Central. To see how the news was incorporated into expectations during non-trading hours, see the futures for the Dow Jones. Source: barchart.com accessed 12/3/2019 1pm Central.

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See if you can find when Trump makes his statement about trade negotiations with China. Winning!

Here is the Dow Jones, 5 minute increments. Clearly, Mr. Trump’s statement had an afterhours impact.

Source: barchart.com accessed 12/3/2019 2:15pm Central.

To see how the news was incorporated into expectations during non-trading hours, see the futures for the Dow Jones.

Source: barchart.com accessed 12/3/2019 1pm Central.

Menzie Chinn
He is Professor of Public Affairs and Economics at the University of Wisconsin, Madison

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