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" ... Markets were mostly unfrazzled by the agitation. Instead, they cheered the President’s withdrawal from his most controversial promises. Xi Jinping’s three-day visit at Mar-A-Lago dissipated fears of a trade war with China. In Trump’s own word, Xi was “a very good man” and the talks led to “tremendous progress” on a wide range of issues. Similar praise was lavished on Japan’s Abe, with whom the President has “a very, very, good bond – very, very good chemistry”. Trump’s may be an eccentric billionaire with an unusual bond with blue-collar workers, but his program would be classical market-friendly Republican dogma: tax cuts, deregulation, and defense spending. Market leadership rotated away from the initial “Trump trades”: yields fell back, technology and healthcare outperformed cyclical stocks, and emerging markets enjoyed a lasting rally. ... "