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

Professor of Public Affairs and Economics at the University of Wisconsin • Dec 3, 2019 at 2:48 PM EST

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

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 after-hours impact.

(Click on image to enlarge)

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

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

(Click on image to enlarge)

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

Disclosure:

None.

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