The United States blacklist has gained eight new Chinese technology companies, added to the list on Monday under the Trump administration. The White House accused these eight tech companies of being implicated in human rights violations against Muslim minorities in China’s far-western province of Xinjiang.
Two of the companies included on the list are Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. both companies specialize in video surveillance, that control nearly a third of the global market for video surveillance, with their cameras all over the world.
With China’s Vice Premier Liu He scheduled to arrive in Washington for high-stakes trade talks being viewed by financial markets around the world, the timing for these blacklisted companies seem less than ideal.
President Donald Trump has stated “there’s a chance that we could do something very substantial” regarding the scheduled meeting. Furthermore, warning China that if the Nation does anything “bad” to quell protests in Hong Kong, trade negotiations with the United States would suffer.
As a result, Wall Street closed in the red, as optimism of an abrupt trade war resolution faded. On Tuesday, a Chinese newspaper reported that China has toned down it’s expectations ahead of the new negotiations meeting scheduled to start Thursday in Washington. Stating that Vice Premier Liu He will not carry a “special envoy” title, signalling low commitment.
Investors are also awaiting possible Chinese retaliation following the additions to the blacklist on Monday. From a macro perspective, U.S. producer pricing saw the largest decline in eight months this September. Creating more room for monetary easing.
As a result, trade tensions and on going weak global demand took its toll on U.S. stock process.
- Dow Jones: 313-point loss or 1.2%
- S&P 500: 46-point loss or 1.6%
- Nasdaq: 133-point loss or 1.7%
New Zealand dollar to 70c? As the dollar continues, it's a downward spiral, risk-on currencies such as the New Zealand dollar have seen a rise in value. I have talked about how the market is slowly pricing in the long-term effects of the Coronavirus on...
Coronavirus cases have passed 18 million across the globe, with deaths approaching 700k. Markets are slowly pricing in how the Coronavirus is affecting countries’ respective markets. The US Dollar is down 10% from its March highs, and the ASX is slowly edging down, booking losses three weeks in a row. This is your week ahead.
GBP/USD broke 1.30 today, a critical resistance that signals a strong bullish sentiment on the Pound as the dollar weakened on the Fed, sending full message support. Jerome Powell stated that they would keep all support lines open, including bond-buying, low-interest rates, and central bank dollar swaps. Jerome Powell emphasized, “[the fed] is not thinking about thinking about thinking about raising rates.” Andrew Slimmon, Senior Portfolio Manager at Morgan Stanley, stated that the “Fed would keep supporting risk assets.”, suggesting that it would be an excellent time to be long in risk assets.
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