The United States trade deficit narrowed in October to its lowest level since early this year, the government reported Friday, with exports to China hitting a high.
The encouraging trade report and signs that a tax cut package would pass the Senate sent stocks to their highest levels in two years Friday. Bond prices fell for another day as investors expected the tax deal to lead to economic growth and higher budget deficits.
Tom di Galoma, head of fixed income trading at Guggenheim Partners in New York, said traders see the deal’s passage as nearly inevitable.
“To stimulate the economy, it really has to be done,” he said. “The last thing you want to do is raise taxes in the middle of a recession.”
Full story: Exports to China help U.S. narrow trade deficit
