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What to expect from the US-China trade talks this week
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Loading...This week, all looks of traders and investors will be focused on the forthcoming meeting between US and Chinese sales representatives. Negotiators from China and the United States say they are working on a plan to end the trade dispute that will lead a meeting between President Donald Trump and Chinese leader Xi Jinping at a summit in November.
The nine-member delegation from Beijing, led by Deputy Minister of Commerce Wang Shouwen, will hold meetings with US officials led by Finance Minister David Malpass on August 22 and August 23.
Although China's list of China's tariff quotas is a cure for consumer products, it includes imported billions of dollars worth of imported goods and components that come in ready-made goods produced in the United States. This means that US manufacturers will have to pay more for parts and equipment and make their products less competitive on foreign markets.
What to expect?
After the last stock adjustment, the last upward movement was dictated by the good financial statement for the mass of companies worldwide. It seems investors have chosen to turn away Trump's plans to impose a tariff after China's tariff and turn their attention to financial data. However, losers were not missing. Emerging markets have considerably lagged behind major US indices, and this leads to potential profits at the moment. So far, Asian indices traded about 10 percent below the pre-fart tip, and if we see this week at least as determined by the authorities to stop trading, Asian markets will be extremely attractive. I expect strong upward movements in Chinese indices, as well as country-dependent risky currencies such as AUD and NZD.
Where is the profit after Trump Trade War?
In the bad course of negotiations, the US indices will certainly withdraw from the top because in the long run, in the face of a trade war, the US will be the losers. This will cause investors to focus on hedging instruments and close some of the winning positions. In a bad scenario, the Asian markets will remain low, with much of the losses already accumulating and not expecting deep correction from current levels.
Source: CNBC
Photo: Pexels.com
Trader Petar Milanov Read more:
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