On Friday, the White House announced 25% tariffs on $50 billion worth of Chinese goods. As promised, China quickly retaliated imposing 25% tariffs on $50 billion worth of U.S goods. They plan to introduce these tariffs in two phases.
Happy golden spiral day! Am I the only one who celebrates this day? Many people don’t know it exists, but it is part of the seasonal change point time window that impacts all markets on a cycle basis. What is golden spiral day? It is June 18, simply put 6.18.
It is expected that the latest installment of concerns over the United States and China entering a potential trade war will encourage global stock markets to come under pressure this week. Some indications of risk aversion are already being seen in the markets, with the Japanese yen gaining as a result of market uncertainty and a number of different Asian currencies trading lower due to reduced investor appetite.
Major benchmarks around the globe are all lower this morning with U.S. and China trade tensions front and center. The S&P 500 traded to a low of 2765.50 on Friday after the White House announced 25% tariffs on $50 billion of Chinese goods. However, only $34 billion of which will be imposed on July 6.
Crude oil prices got hit hard as the trade war for oil traders got personal. In a tit for tat, the Chinese government announced tariffs on U.S. oil imports as well as other energy products, in a sector that U.S. President Donald Trump promised to make great again. This along with the fact that most people believe that OPEC and Russia will decide to increase oil output even after reports that Bloomberg says that Iran, Iraq and Venezuela will veto the increase.
Well, it’s official, the Trump Administration has slapped a 25% tariff on 818 Chinese goods, with a total value of up to $50 billion. This action comes on top of the recent decision to impose steel and aluminum tariffs on many U.S. allies, including Canada, Mexico, and the European Union.
The U.S. dollar gained against all major pairs this week. A hawkish Fed and a dovish European Central Bank (ECB) gave the edge to the American currency. U.S. President Donald Trump scored diplomacy points in Singapore by meeting with North Korean leader Kim. Trade war fears were once again at the forefront as the Trump administration announced new tariffs on Chinese goods on Friday. Crude oil prices plunged as supply might be on the rise with heavy anticipation on the Organization of the Petroleum Exporting Countries meeting on Friday.