01.10.2022

Escalation of the “trade war” unnerving US market

On Friday, key US stock indices in the first half of the session show negative dynamics amid a growing trade conflict between the US and China, after Donald Trump approved a new package of import tariffs on Chinese goods worth $ 50 billion.

Trump nevertheless imposed duties against China, and Beijing has already announced that it will respond to this. How do the states react to this decision of their president?

So, the 25% duty on a certain list of Chinese goods will enter into force on July 6. In turn, the Ministry of Commerce of the Celestial Empire replied that it plans to introduce tariffs on imports from the United States of a similar scale.

As for the released statistics, industrial production in May fell by 0.1%, while an increase of 0.2% was expected after its increase by 0.9% a month earlier. At the same time, the preliminary value of the University of Michigan consumer confidence index for June was 99.3 points, while analysts had expected it to rise from 98.0 points a month earlier to 98.5 points.

By 19:42 Moscow time, the Standard & Poor’s 500 wide-market index is down 0.39% to 2771.70 points, the blue chip indicator Dow Jones Industrial Average is trading at 0.85% minus 24961.87 points, and the index high-tech industries Nasdaq Composite is down 0.32% to 7736.22 points.

By 19:42 Moscow time, oil is showing a decrease of 3.3% to $ 64.70 per barrel. The price of gold went down 2.1% to $ 1,280.40 per troy ounce. The EUR / USD currency pair, meanwhile, is trading up 0.31% at 1.1608.

Quotes of Adobe Systems, a diversified US software maker, are down 2.4% due to the not-so-optimistic sales forecast for Q3.

Oil workers Exxon Mobil and Occidental Petroleum are dropping 1.3% and 1.5% from their assets, respectively, following the cheapening of oil amid growing fears that next week a decision will be made to increase production volumes as part of an OPEC meeting.

Meanwhile, the market capitalization of semiconductor manufacturer NXP Semiconductors increased by 0.7% amid news reports in the media that China had approved the acquisition of Qualcomm.

More than two-thirds of the blue chip stocks are traded in the red zone, with Caterpillar (-2.7%), Boeing (-1.8%), and American Express (-2.0%) being the most in demand. while the shares of Procter & Gamble (+ 0.8%), Nike (+ 1.0%) and Verizon Communications (+ 0.2%) are in the most noticeable plus.

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