More tariffs for China

Daily Analysis - 14/05/2019

U.S getting ready to impose another set of tariffs worth $300B

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The United States wants more taxes from China and its getting prepared to impose them on a new set of Chinese imports. On Monday President Donald Trump announced that he had yet to decide if he is going to strike China with a new set of tariffs on an additional $300B worth of Chinese products. The U.S. Trade Representative Office formally launched the process with a proposition yesterday.

The U.S. Trade Representative Office describes a potential tax of up to 25% on China for products estimated to be worth approximately $300 billion. The board will hold a public discussion on June 17 accompanied by another week for comments.

Asian stocks fell due to trade war escalation


On Tuesday Asia stocks fell following Chinas increased taxes on some U.S products. The move was described as a strike back on Washington’s decision to increase duties on Chinese goods.

The Nikkei 225 in Japan dropped more than 0.7%, with Softbank Group shares falling more than 5%. The Topix index too fell about 0.6%. Mainland Chinese shares moved lower while the Shanghai composite fell lower by more than 0.3%. The Shenzhen composite decreased by about 0.4%. Hong Kong’s Hang Seng index dropped about 1.5% while Tencent shares dropped more than 2%.

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Worst day since January for Dow


On Monday U.S Stocks dropped following China's decision to increase taxes on some U.S. products while the continuing trade conflict between the world’s biggest economies escalates. The popular Dow Jones Industrial Average lost more than 617 points, which is about 2.4%, to 25,324.95 and registered its weakest day since Jan 2019. The Nasdaq Composite dropped 3.4% which its largest single-day drop of 2019 and reached 7,647.00 The S&P 500 too had its worst day since January, after dropping more than 2% to 2,811.86.

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Oil loves the new geopolitical tensions but profits restricted


On Tuesday Oil went higher, but profits were halted due to the trade war escalation between the United States and China. U.S WTI crude futures went up 12 cents, to $61.16 per barrel while Brent crude futures went up 6 cents to $70.25 a barrel which is about 0.1%, from their last conclusion.

 

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