In recent sessions, market focus across the world has been largely attuned to developments in the escalating trade conflict between U.S. and China.
On Monday, news emerged that the U.S. administration would impose 10 percent tariffs on $200 billion worth of Chinese imports, and those duties would go onto rise to 25 percent at the end of the year. On Tuesday, the Chinese Commerce Ministry said the country had no choice but to retaliate against this latest round of tariffs, so it could safeguard its rights and interest in a free trade world. Consequently, markets briefly dropped in afternoon trade, after reports materialized that Beijing would inflict new tariffs on American goods, worth $60 billion, effective from later this month.
However investors considered the latest tariffs to be not as bad as previously feared. Following the China tariffs report, stocks in Europe came under sharp pressure, but bounced back a short while later. But another indicator, shows some concerns about the market, as VIX a.k.a. the fear index futures jumps by 15%.
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