{"id":147600,"date":"2019-05-13T09:55:11","date_gmt":"2019-05-13T13:55:11","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=147600"},"modified":"2019-05-13T09:44:59","modified_gmt":"2019-05-13T13:44:59","slug":"equities-under-pressure-thanks-to-trump-tariff-plans","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/05\/equities-under-pressure-thanks-to-trump-tariff-plans\/","title":{"rendered":"Equities Under Pressure Thanks To Trump Tariff Plans"},"content":{"rendered":"
May 13, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Equity markets have begun the week with a very heavy tone,<\/strong>\u00a0in response to fresh comments made from both sides in the recently reignited US\/China trade war.<\/p>\n

Using his preferred platform of Twitter, the president wrote:<\/p>\n

\"\"<\/a><\/p>\n

In a bid to alleviate some of the anxiety among the agricultural sector,<\/strong>\u00a0Trump then added:<\/p>\n

\"\"<\/a><\/p>\n

Trump Tactics Back in Action<\/strong><\/h2>\n

Last week,\u00a0Trump raised the 10% tariff on $200 billion of Chinese goods to 25%<\/strong>.<\/p>\n

The move caught markets firmly by surprise, given that the two economic superpowers were\u00a0just weeks away from signing<\/a>\u00a0a 150-page long trade deal. However, Trump reportedly grew tired of China taking too long to agree on the deal. He was also unhappy with the country\u2019s attempts to renegotiate in the closing stages.<\/p>

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China Yet To Retaliate<\/strong><\/h2>\n

While China has yet to announce any countermeasures,\u00a0it did immediately respond last week by saying that\u00a0it would retaliate<\/a>.\u00a0<\/strong>For now, the market awaits the decision of the Chinese government.<\/p>\n

Furthermore, since China imports less than $200 billion US goods, it will be unable to match the new US tariffs. Chinese delegates were in Washington last week for a further round of trade talks. However, Chinese state media has stated that\u00a0Trump\u2019s moves have significantly disrupted negotiations.<\/strong><\/p>\n

US To Tariff Remaining Chinese Goods<\/strong><\/h2>\n

Overnight, the US Trade Representative Robert Lighthizer made the following announcement:<\/p>\n

\u201cEarlier today, at the direction of the President, the United States increased the level of tariffs from 10 percent to 25 percent on approximately $200 billion worth of Chinese imports.\u00a0The President also ordered us to begin the process of raising tariffs on essentially all remaining imports from China, which are valued at approximately $300 billion.\u201d<\/strong><\/p><\/blockquote>\n

The moves are a typical intimidation tactic from Trump aimed at coercing China into signing a deal.<\/p>\n

However, China has reportedly demanded that the US lift the current tariffs before any trade deal can be agreed upon. They also want the text of any deal to be \u201cbalanced\u201d to protect the \u201cdignity\u201d of both nations.<\/p>\n

For now, however, it seems that Trump is not too concerned with China\u2019s dignity and the clock is ticking to sign a deal or invite an all-out trade war that could seriously harm world growth again this year.<\/p>\n

Technical Perspective<\/strong><\/h2>\n

\"spx500\"<\/a><\/p>\n

The SPX500 gapped down at the open last night with price trading back below the 2856.30 March 2019 high<\/strong>. Price has been testing below the level over the last two weeks but has failed to print a weekly close below, so price action this week will be important The next stop on the downside is the 2816.15 level. However, given the two large bullish weekly pin bar candles of the last two weeks, there is still a risk of a reversal higher. Bears will need to see a break back above the 2877.30 January 2018 high in order to shift the near term bearish bias.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Equity markets have begun the week with a very heavy tone,\u00a0in response to fresh comments made from both sides in the recently reignited US\/China trade war. Using his preferred platform of Twitter, the president wrote: In a bid to alleviate some of the anxiety among the agricultural sector,\u00a0Trump then added: Trump Tactics Back […]<\/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-147600","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/147600","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=147600"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/147600\/revisions"}],"predecessor-version":[{"id":147604,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/147600\/revisions\/147604"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=147600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=147600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=147600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}