Trade dispute does not stop

Published on: 09-Dec-2019
Category: Trading
Last updated: 13-Jan-2020

Trade dispute does not stop

The ongoing trade dispute is causing a sharp drop in exports in China. For four months, exports have now fallen, in November last by 1.1 percent. The rival of the US trade dispute, exports fell 23 percent last month compared to the same period last year. Since the beginning of the year, there are 12.5 percent fewer goods that come from China to the United States. According to Chinese customs, imports from the USA have fallen by 23.3 percent since the beginning of the year compared to last year.

The talks between the countries are running at full speed, but some could not yet. US President Donald Trump has set a deadline of 15 December. If no agreement can be reached by that time to reach a solution, there will be further punitive tariffs. An additional 15 percent import charges on consumer goods are possible.

The stock markets react cautiously to the poor import and export figures from China. However, positive labor market numbers from the US helped Wall Street get rid of the fear of a recession. The unemployment rate is at its lowest level in 50 years, and in November, more jobs were created than at the beginning of the year. The Dow Jones rose 1.2 percent to 28015 points, the highest two months ago. It lacks only 0.5 percent of its record at the end of November with 28164 points. The S & P 500 Index also rose 0.9 percent to 3,145 points and the Nasdaq index reached 8656 points, up 1.0 percent.

In Japan, the leading index Nikkei achieved an increase of 0.33 percent and thus 23430 points. The leading index SSE Composite from Shanghai fell by 0.1 percent.


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