China app ban roils marketks
|Friday’s early calm has been shattered by the US decision to ban some Chinese apps, with tech stocks taking the brunt of the losses.
- Trump moves to bank TikTok and others
- Stock market weakness points towards a possible change of White House resident in November
- Gold edges up as US-China tensions rise
The atmosphere across stock markets is turning sour as the weekend looms, as investors fret about possible retaliatory measures from China after the US announced a ban on key apps from Sunday. Such a move opens an entirely new dimension to the US-China standoff, and puts major tech firms squarely in Beijing’s sights, as the two powers seek out their opponent’s weak spots. US markets have struggled to hold their ground all week, and as the week comes to a close it looks like more pre-election losses are in store. The Nasdaq continues to lead the losses for US markets, which is a very negative sign for equities in the near-term; such an absence of risk appetite flags the potential for a much bigger drawdown as the election nears, which would conform to the normal pattern for election years, and also suggest that the Republicans are on course to lose the White House.
At least gold has benefited from the outbreak of risk aversion, recovering $1950 and marking a continued rebound after the sharp losses of Wednesday and Thursday. The safe haven has continued to see inflows in recent weeks, giving it a foundation to push back towards $2000 and the highs seen at the beginning of September.
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