The stock market fears more trade retaliation from China is coming next week

  • 📰 CNBC
  • ⏱ Reading Time:
  • 67 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

Traders are concerned there is another shoe to drop: more retaliatory measures from China, which may or may not come in the form of tariffs.

What other form would retaliation take? It wouldn't be hard to imagine. China has already cancelled a large pork order. It could come in the form of regulatory harassment of U.S. corporations operating in China, but it could be even simpler.

Jim Kelleher at Argus tells his clients to watch for sudden announcement of loss of business: "We would be careful to monitor investments in U.S. 'champion' names such as Boeing and Caterpillar. Should the trade environment between the U.S. and China deteriorate further, Chinese officials could directly or indirectly discourage Chinese companies and consumers from doing business with high-profile symbols of U.S. corporate might.

Kelleher also warns against simply using a dollars and cents approach to trade: "Trade can be about more than dollar amounts. Business is a delicate mix of activity and sentiment; deterioration in sentiment can have an outsized effect on activity. Moreover, global supply chains have become complicated and entangled among nations. Counting the dollar value of car parts, for example, does not capture how those delayed or absent parts may impact the production of an entire vehicle.

President Trump, presumably, is well aware of this, but Chris Krueger at Cowen notes that his efforts to shield farmers from the pain felt by retaliatory tariffs may be skewing his thinking: "The most important takeaway is that anything that insulates Trump's base from the near term costs of his actions raises the likelihood we continue on the tariff path."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

I wish they’d just chill for like a week.

How about this market is prepping for a much needed correction and algos keep distorting the move. 100 points lower isn’t market fear, it’s market complacency.

oh can't wait, short the shit out the market!

How about a new topic that has truth and fact behind it?

British ChathamHouse has made a falsification of the report on the successful reform of the energy sector of Ukraine

I thought they were good friends lol

Not yet it doesn't fear, or the DOW would be down 500+ points at least right now

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Asian stocks, yuan fall as U.S.-China seen deadlocked in trade talksU.S. stock futures fell and Asian shares slipped on Monday on growing uncertaint... trade war is a lose lose game. This is part of the Art of the Deal that Trump forgot to write about. Managing High Finance and Trade are not in his skill set. He is a Flim-Flam artist and the Chinese are not stupid or Putin or Kim Jung-Un. Kim asked for $2 million for Otto Warmbier UP Front. Another Trump Lie? Any fall in yuan will soften the harm to Chinese exports to U.S! Then U.S will blame China for currency manipulation! What happened to free market ideology of American conservatives?
Source: Reuters - 🏆 2. / 97 Read more »

Stock market opens sharply lower as U.S.-China tariff battle intensifiesU.S. stocks fell sharply at the opening bell Monday after China retaliated for the Trump administration's decision last week to raise tariffs on Chinese...
Source: MarketWatch - 🏆 3. / 97 Read more »

Here’s the new China calculation for U.S. stock market investorsPresident Trump has a new calculation relating to his reelection and China tariffs, says TheAroraReport. The calculation centers around a potential “President Biden.” TheAroraReport Read how Trump is lying to you about China tarrifs. This economy is now the Titanic. Trump will get voted out by a huge majority.
Source: MarketWatch - 🏆 3. / 97 Read more »

Here are Monday’s worst stock-market performers as U.S.-China trade dispute escalatesThese stocks are taking the biggest beating Monday with Dow now down 700 points TrumpsTariffs are a winning strategy. Not.
Source: MarketWatch - 🏆 3. / 97 Read more »