US President Biden signs order to ban certain tech investments in China – Reuters

Anil Panchal FXStreet

Late Wednesday, US President Joe Biden signed the much-awaited bill that allows the US Treasury Department to prohibit or restrict certain US investments in Chinese entities, per Reuters.

The three key technology sectors mentioned in the executive order are semiconductors and microelectronics, quantum information technologies, and certain Artificial Intelligence (AI) systems.

The news also cites US President Biden as declaring a national emergency to deal with countries like China "in sensitive technologies and products critical to the military, intelligence, surveillance, or cyber-enabled capabilities."

It’s worth noting that the bill was edited to soften the restrictions for China technology companies on a revenue generation basis. Bloomberg previously came out with the news suggesting the hardships for only those Chinese companies that get more than 50% of revenue from the sectors including quantum computing and artificial intelligence (AI) to be included in the list.

Market reaction

Trading sentiment remains mostly unchanged on the news as most market players were aware of the outcome. Also restricting the reaction to the news could be the trader’s wait for the US inflation data.

Also read: AUD/USD stays depressed below 0.6550 ahead of Australia/US inflation clues

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD recovers above 1.1600 as focus shifts to US data

EUR/USD stages a modest rebound and trades in positive territory above 1.1600 in the European session on Wednesday. Improving risk sentiment makes it difficult for the US Dollar to preserve its strength and helps the pair edge higher as focus shifts to key US data releases.

GBP/USD climbs above 1.3350 on improving risk mood

GBP/USD gains traction and advances toward 1.3400 on Wednesday. Although there are no headlines pointing to a de-escalation in the Middle East conflict, the modest recovery seen in US stock index futures limit the USD's gains and help the pair hold its ground.

Gold rebounds toward $5,200 as USD retreats

Gold maintains its offered tone through European session on Wednesday and climbs to the $5,200 region. The downward correction seen in the US Dollar and the ongoing crsis in the Middle East seem to be allowing XAU/USD to preserve its recovery momentum.

ADP Employment Report set to signal stronger February jobs growth, little effect on Fed outlook

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday. The so-called ADP Employment Change report is expected to show that the United States private sector added 50K new positions in the month, following the 22K gained in January.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.