{"id":129926,"date":"2018-07-12T09:59:22","date_gmt":"2018-07-12T13:59:22","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=129926"},"modified":"2018-07-12T07:01:14","modified_gmt":"2018-07-12T11:01:14","slug":"au200-stocks-analysis-trade-wars-may-reduce-demand-for-australian-raw-materials","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/07\/au200-stocks-analysis-trade-wars-may-reduce-demand-for-australian-raw-materials\/","title":{"rendered":"AU200 Stocks: Analysis – Trade wars may reduce demand for Australian raw materials"},"content":{"rendered":"
July 12, 2018<\/div>
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By IFCMarkets<\/a><\/p>\n

Trade wars may reduce the demand for Australian raw materials<\/strong><\/p>\n

Will prices of the Australian stock index S&P\/ ASX 200<\/a> fall amid the strengthening of the China-US trade war?<\/p><\/blockquote>\n

In the structure of Australia’s exports, mining products account for 32%. Fuel accounts for 28% and food products together with agricultural raw materials – 18.5%. China is the most important buyer. The limitation of the supply of Chinese goods to the US may reduce the demand for Australian raw materials. The plans of the Reserve Bank of Australia to raise the discount rate may be additional negative factors for S & P \/ ASX 200. Currently, it is at a historically low level of 1.5% with an annual inflation of 1.9%.<\/p>\n

\"AU200\"<\/p>\n

On the daily timeframe, AU200: D1<\/b> breached down the support line of the accelerated uptrend. The medium-term uptrend preserves, but the prices are correcting down from the high since December 2007. The decrease in demand for Australian raw materials in China may contribute to their further decline.<\/p>\n