Chinese consumers supports Huawei

Daily Analysis - 22/05/2019

Apple is going to lose momentum versus Huawei in China

chinese-consumers


Chinese consumers are starting to support Huawei. They are blaming the U.S. of “bullying the company,” with some on social media stating they’re preferring Huawei's technology rather than Apple's.

The United States increased pressure on Huawei after placing the Chinese company on a blacklist that requires American firms to acquire a license from the government before selling to Huawei equipment. This move surely threatens to chop off the supply of key parts to Huawei.

Asia traded cautiously while US-China trade war escalates


On Wednesday Asia Markets remained softened while the trade war extended between the U.S. and China.

Shares in mainland China were mostly even by the morning session’s close. The Shanghai Composite, Shenzhen component and Shenzhen composite all floating near the recent consolidation area.

Hong Kong’s Hang Seng index totaled 0.3% while the Japanese Nikkei 225 scored 0.28%. In South Korea, the Kospi improved from its initial fall to rise by 0.25%

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Dow grow by 200 points


On Tuesday stocks finished higher after the story that the U.S. briefly lifted limitations on the Chinese telecom Huawei. The Nasdaq Composite improved about 1% to 7,785.70 while the S&P 500 advanced 0.9% to close the day at 2,864.35, with the tech area growing more than 1%.

The Dow Jones Industrial Average gained about 200 points to 25,877.30 as Intel surpassed the expectations.

Equities also got support from Boeing. Shares of the popular aircraft producer increased by more than 1.5% following U.S. aviation officials that a bird impact with the plane may have caused the 737 Max accident in March.

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Dollar near the recent tops


On Wednesday the popular greenback floated near a month top, boosted by leading U.S. yields. And that happened due to the United States decision to lift the initial trade limitations on Chinese company Huawei.

The move appeared as a relief to exchanges that were severely beaten by the increasing trade tensions between the United States and China. Nevertheless, analysts stated that the sentiment is still very weak due to the uncertainty regarding the U.S- China tariff negotiations.

Versus a box of important rival currencies, the greenback was a little lower at 98.013, having erased a 21-day high of 98.133 overnight. The index rose about 1.9% so far for 2019.

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