01.10.2022

Escalating “trade war” unnerving the US market

On Friday, key stock indexes of the United States of America in the first half of the session show a negative trend against the background of increased trade conflict between the US and China, after Donald trump endorsed a new package of import tariffs on Chinese goods worth $50 billion.

Trump still imposed duties against China, and Beijing has already said that the answer to this. How States react to this decision of their President?

So, 25% duty on a range of Chinese goods will come into force from 6 July. In turn, the Ministry of Commerce of China said that it plans to impose tariffs on imports from the United States a similar scale.

With regard to the released statistics, industrial production in may fell 0.1%, while the expected increase of 0.2% after increasing 0.9 percent a month earlier. In this preliminary index of consumer confidence of University of Michigan in June amounted to 99.3 points, while analysts expected it to increase with a 98.0 point a month earlier to 98.5 points.

19:42 Moscow time the index broad-market Standard & Poor’s 500 lowered by 0.39% to 2771,70 paragraph, the indicator of “blue chips” Dow Jones Industrial Average is trading on the downside by 0.85% on the level of 24961,87 of points and the index high-tech industries Nasdaq Composite index falls 0.32% to 7736,22 points.

19:42 GMT oil shows a decrease of 3.3% to $64,70 per barrel. The price of gold went down by 2.1% to $1 280,40 per Troy ounce. EUR/USD pair is meanwhile trading higher by 0.31% at the level of 1,1608.

Quotes of Adobe Systems, a diversified American manufacturer of the software, reduced by 2.4% due to the not-too-optimistic forecast for sales for the III quarter.

Oil companies Exxon Mobil and Occidental Petroleum subtract from your asset 1.3% and 1.5% respectively following the reduction in price of oil, against the backdrop of increasing fears about the fact that next week at the meeting of the OPEC will decide to increase the volume of production.

Meanwhile, the market cap semiconductor manufacturer NXP Semiconductors increased by 0.7% against the backdrop of recent media reports that China approved the transaction on its acquisition by Qualcomm.

More than two thirds of shares in the composition of the index of “blue chips” are traded in the “red zone”, and the lowest demand paper Caterpillar (-2,7%), Boeing (-1,8%) and American Express (to 2.0%), with the most notable plus are shares of Procter & Gamble (+0,8%), Nike (+1.0%) and Verizon Communications (+0.2 percent).

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