Threats to new tariffs sent Wall Street to a negative territory

It seems that we are targeting a market correction, and if you ask a large part of Wall Street analysts there is no doubt.

The US indices closed the red session again, this time because of Trump's administration, which predicts the introduction of new tariffs against China. The United States is preparing new tariffs against all other Chinese imports if trade talks between presidents Donald Trump and Xi Jinping fail to resolve the current trade dispute.

The announcement of new tariffs on Chinese goods could happen in December and focus on the rest of the Asian imports that are not yet subject to taxation. The total will amount to about $ 257 billion.

Traders have already begun to accumulate The Worse Case Scenario, and in the mid-term, by the end of the year, we will probably see global stock market pressures. Such statements and intentions tend to throw investors in great uncertainty, prompting most of them to cache. New tariffs combined with a slowing Chinese economy would lead to a very negative start for 2019, similar to the one in 2016 when China was again in focus.

Source: Bloomberg Finance L.P.

Charts: Used with permission of Bloomberg Finance L.P.

Read more:

• Peloton can collaps by 86% under competitive pressure
• Hong Kong will continue to push down the financial markets!
• S&P on a historic high, analysts expect more gains
• 7 best exchange-traded ETFs for dividends
• Five cannabis stocks under $10 you need to buy