The China-US saga continues | Calamatta Cuschieri

The US prepared a list of $200 billion worth of Chinese goods that will be subjected to additional tariffs as China promised to retaliate with similar measures

Global stocks were sold off today, with European markets following the lead from Asian exchanges after the United States unveiled a plan to introduce 10% duties on Chinese merchandise
Global stocks were sold off today, with European markets following the lead from Asian exchanges after the United States unveiled a plan to introduce 10% duties on Chinese merchandise

Market roundup

Global stocks were sold off today, with European markets following the lead from Asian exchanges after the United States unveiled a plan to introduce 10% duties on Chinese merchandise worth $200 billion, nearly all imports left after the first package of trade barriers. Precious metals and oil were also hit and the dollar advanced, while bonds were mixed. Meanwhile, traders were following the summit of the North Atlantic Treaty Organization for any more cracks appearing between the members of the alliance.

The FTSE finished 1.3% in the hole in London, led by Micro Focus's slump of 9.17%. The German DAX closed 1.53% down. ThyssenKrupp was the worst constituent, falling 4.27%. The CAC 40 ended 1.48% lower with Carrefour's 4.87% loss at the bottom of the chart.

Oily corner

Crude oil prices were again under the weather, extending losses from earlier in the session with Brent losing as investment incentives remained considerably low amid the renewed trade war fears between the United States and China.

Oil values continued to trade in the negative territory despite the release of the EIA report that stated a decline of 12.6 million barrels in the US crude inventories for last week. The figure marked the biggest drop since September 2016. Market watchers also digested an OPEC monthly report released earlier in the day that forecasted an increase in global demand for 2019.

Putin meeting Macron at World Cup final

Russian President Vladimir Putin and his French counterpart Emanuel Macron will meet at the World Cup final hosted in Russia. The match is due to take place on July 15 in Russia's capital Moscow where the French are facing Croatia.

Earlier today, it was reported that it is possible the two leaders will hold talks during the championship's final game. The French leader was present at the Tuesday's game where France played and won against Belgium but did not meet with Putin.

However, earlier this week Kremlin Spokesman Dmitry Peskov stressed that Russia and France have a good relationship and that their contacts remain "at the highest level" and are "quite intensive".

 

Disclaimer: This article was issued by Rodrick Duca, trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

 

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