A new wave of speculation about the fact that the meeting between the President of the United States and the President of the People's Republic of China won’t take place within the previously agreed time frame has led to the major stock market indices sinking sharply. Market participants are concerned about the statements of individual financial experts that a trade deal between the United States and China may not take place or will be concluded much later than investors would like.
According to available information, the current dynamics for futures is:
• oil index: crude oil costs about $ 52.15 a barrel, a decrease of -1.86 points;
• gold index: cost $ 1,314.7 per troy ounce, the increase was +0.30 points;
• Dow Jones index: 25030.00, a decrease of -297.00;
• United States (10-year) bond index: 2.670%, a decline of -1.33%.
The main reason for the concerns of market participants on the fact of a trade deal between the US and China is that if the scheduled meeting doesn’t take place and the relevant agreements are not signed, then additional tariffs and customs duties imposed on all goods from China will come into force. Appreciation in any product category will lead to significant losses and lost profits.
However, investors rushed to reassure the adviser on the economy of the White House. From his statement it became known that, contrary to the opinion that too much work has to be done to conclude a trade deal, as regards the elaboration of certain points of agreement, from the American side all documents are in order. Much more doubtful is China’s position on the harmonization of all the points planned for a trade deal.
Optimistic data provided this week by the Ministry of Labor. As it became known, the number of applications for unemployment benefits has decreased. Currently, the number of applications for benefits has decreased to 234 thousand people which is 19 thousand less than a month earlier. However, a preliminary forecast of analysts promised a decline to a level of 221 thousand people.