Trump is hiking taxes against China

Daily Analysis - 10/05/2019

U.S vs China the game is on

taxes


The United States President Donald Trump increased the tensions with China as the U.S. rose taxes on $200 billion in Chinese products. China's Ministry of Commerce announced shortly after the deadline regarding the new duty increase his country will take strike back against the U.S decision. It did not publish what its reply would involve but said it "deeply regrets" the turn of events.

Many hoped that a resolution could be achieved by the two parties before the deadline, but eventually no agreement formed. Trade talks between the countries are estimated to resume on Friday. On Thursday in a statement Judd Deere, White House Deputy Press Secretary said.

"This evening, (United States Trade Representative Robert Lighthizer) and (Treasury Secretary Steven Mnuchin) met with President Trump to discuss the ongoing trade negotiations with China. The Ambassador and Secretary then had a working dinner with Vice Premier Liu He, and agreed to continue discussions tomorrow morning at USTR,"

Gold going up following tariffs


On Friday the popular yellow metal Gold rose, supported by the extended trade tensions following U.S. President Donald Trump's tax hike on $200B worth of Chinese goods. Increasing taxes gave support to the gold and set it for a weekly gain. U.S. gold futures steady for now at $1,286.89 an ounce while Spot gold rose 0.2% at $1,286.22 per ounce.

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Oil gave back profits


On Friday Oil trimmed its initial profits after Trump's new tax hike on $200 billion worth of Chinese goods. That increased the trade friction between the world's two largest oil consumers. U.S. (WTI) crude futures went up 8 cents, at $61.77 per barrel, after climbing to $62.50 a barrel earlier in the day. Brent crude futures were up 2 cents at $70.40 per barrel.

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U.S Dollar near 120-day low


On Friday the popular dollar was even versus the safe-haven Japanese yen, after the increase in U.S. tariffs on Chinese goods.

The greenback limited changed at 109.719 yen. The U.S. currency, which slid to a 120-day low of 109.469 late night, lost more than 1% versus the yen this week. Yuki Ishizuki, senior currency strategist at Dalian Securities said "The dollar is clearly on a downtrend against the yen, both in terms of technical and flows,"

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