{"id":133086,"date":"2018-09-03T06:55:37","date_gmt":"2018-09-03T10:55:37","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=133086"},"modified":"2018-09-03T05:25:29","modified_gmt":"2018-09-03T09:25:29","slug":"stocks-in-red-as-trade-tensions-return","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/09\/stocks-in-red-as-trade-tensions-return\/","title":{"rendered":"Stocks in red as trade tensions return"},"content":{"rendered":"
September 3, 2018<\/div>
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Article by ForexTime<\/a><\/p>\n

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Last week investors hoped that positive developments between the U.S. and Mexico would extend further to Canada, Europe and possibly China. However, this optimism faded when the U.S. failed to reach an agreement with its northern neighbor on Friday. President Donald Trump threatened that if no fair deal is reached, Canada will be out and if Congress interferes he will terminate NAFTA entirely.<\/p>\n

Trump may also take the trade war to an unprecedented level if he goes ahead by imposing tariffs on $200 billion worth of Chinese good. This may come as soon as the public-comment period ends on Thursday. Beijing said it would retaliate with tariffs on $60 billion worth of US goods. If those actions go forward almost 85% of U.S. goods heading to China would be subject to tariffs. Meanwhile, half of the $505 billion of Chinese imports would be impacted.<\/p>\n

China\u2019s Shanghai Composite and CSI300 fell by more than 1% on Monday, and although valuations started looking relatively cheap, investors may continue to sell China\u2019s equities given the uncertainty surrounding the next stage of the trade war and its impact on economic growth. \u00a0This may be a good opportunity for investors looking for long-term value investing. Markets should also expect to see a pullback in U.S. stocks when trading resumes on Tuesday as appetite to risk diminishes.<\/p>\n

Data on Monday showed China\u2019s manufacturing sector grew at the slowest pace in 14-months in August. The Caixin\/Markit Manufacturing PMI fell to 50.6 last month dragged down by export orders which shrank for a fifth consecutive month. With the PMI index moving closer to contraction, it will be interesting to see what steps policymakers will take to boost growth.<\/p>\n

In Europe, investors will also be looking for evidence as to whether trade tensions will drag down the final PMI readings after the slight pickup seen last month in Germany and France.\u00a0 However, it\u2019s U.K. manufacturing PMI that will attract most investor\u2019s attention as the Sterling fell back below 1.3 against the U.S. dollar.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer:\u00a0<\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime Last week investors hoped that positive developments between the U.S. and Mexico would extend further to Canada, Europe and possibly China. However, this optimism faded when the U.S. failed to reach an agreement with its northern neighbor on Friday. President Donald Trump threatened that if no fair deal is reached, Canada will […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-133086","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/133086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=133086"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/133086\/revisions"}],"predecessor-version":[{"id":133103,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/133086\/revisions\/133103"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=133086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=133086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=133086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}