What’s the play as the trade-war starter gun goes off? Buy the news

It is on.

The trade war that is, with U.S. tariffs kicking in as promised just after the clock struck midnight, and China apparently making good on its own promise to match. Even if this was all well-telegraphed, the reality may still be a bit tough to digest for Wall Street.

And for American businesses, the unease can only get worse, warns JonesTrading’s Michael O’Rourke. The chief market strategist reminds us that the biggest beneficiaries of globalization — something Trump has been vocal in criticizing — have been U.S. companies.

“American corporations need China more than China needs them, and with every escalation their uncertainty rises,” said O’Rourke.

While you’re watching trade headlines, though, don’t forget it’s jobs day. That’s as some are still chewing over those hawkish Fed minutes and the fact the central bank is paying close attention to the trade spat. So rub the sleep out of that third eye.

On to our call of the day, which predicts some “buy-the-news” action in the wake of the first big volleys of the trade war. Asian stocks finished higher, and there has been no huge flight to the dollar, gold or other havens this morning.

The call comes from Charalambos Pissouros at JFD Brokers, who points to how the market reacted when Trump first threatened those tariffs — with a slump of more than 500 points for the Dow.

“The markets have already responded to the proposal of these tariffs back in April. In mid-June, when the U.S. finally decided on the matter and China responded, markets remained somewhat indifferent, but they took a hit a few days later on Trump’s fresh threats,” says the JFD senior market analyst in a note to clients.

“Thus, for fears and anxiety to surge again, we may need to get new

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