Analysts at Danske Bank point out that the Bloomberg wrote a story that the next step for the Trump administration is targeting China by imposing tariffs on Chinese imports and limiting Chinese investments in US businesses.
Key Quotes
“It is not a surprise Trump wants to target China, as the US runs the largest trade deficit with China and the investigation of Chinese theft of intellectual property rights have been ongoing since August 2017. Still, it is noteworthy that the story is being more concrete than what we have seen before. For instance, in the most severe scenario, the US could impose tariffs on imports of Chinese-produced clothing and electronics, according to the story. On the investment side, the US may prohibit Chinese takeovers in sectors, where US companies cannot access the Chinese market. The investigation on China is expected in the coming weeks. As with tariffs on steel and aluminium, we expect any measures taken against China to be small in magnitude, meaning this is more about politics than economics. There is a risk we are being too optimistic and that we are heading for a full-blown global trade war, Research US: Symbolic protectionism with limited impact on growth and inflation but risks remain.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD licks its wounds at record low amid pessimism over UK, risk-aversion
GBP/USD consolidates intraday losses around the recently flashed record low near 1.0340, as bears fear the BOE intervention. Hawkish Fedspeak, pessimism surrounding the UK economy and broad risk-aversion add strength to the bearish bias.
AUD/USD renews two-year low as bears poke four-month-old support around 0.6500
AUD/USD reverses the early Asian session corrective bounce on Monday as it drops back towards 0.6500. The Aussie pair pokes the support line of a 4.5-month-old descending trend channel. May 2020 low can lure sellers on defying the bearish channel formation.
EUR/USD: Bears retain control at two-decade low
EUR/USD dropped to the lowest levels since June 2002 before recently bouncing back to 0.9660 during Monday’s Asian session. The bearish chart formation and sustained trading below the previous key support line from July, now resistance around 0.9830, keeps the pair sellers hopeful.
Gold reverses intraday losses from $1630, US Durable Goods Orders buzz
Gold price has recovered the major portion of losses recorded in the Tokyo session. The precious metal declined sharply to near $1630.00 but recovered firmly and is indicating a formation of buying tail, which indicates a strong resoponsive buying structure.
LUNA Classic price hints at a 25% crash as Do Kwon under Red Notice from Interpol
LUNA Classic price reveals a bearish outlook that could unfold over the course of this week. A minor run-up seems plausible, but it is just a move to squeeze the bulls. Therefore, market participants should be ready for a quick reversal.