A trade war between the US and China: Decoupling closer
Stock markets have decided that things are going according to the actions of Donald trump. According to them, he will soon make a knight’s move and force the fed to go not only to the reduction in the fed rate, but also to reduce the refinancing rate in the us economy.
For several weeks we have seen that the American securities market persistently is on the same level prevailing at the end of April. The levels that we outlined back at the beginning of the year, and now we see them on the screen. Now we have to make predictions, but it is not so easy.
The thing in the deployed U.S. foreign trade war against China. The introduction of protective customs duties in proportion equal to the trade deficit between the two countries, threatens not only the American economy. A tsunami can walk across world trade is the most obvious and terrible.
In order for the effect of all these events back in 2008, something was going to happen large-scale. What happens between the US and China, wall street is perceived as purely verbal pressure from Donald trump. Somehow forget that the response of the Chinese team can have serious consequences.
We recommend to monitor the situation. This week will be extremely eventful, starting with the “fed minutes” to parliamentary elections in the European Union. All eyes should watch for wall street to those who are still undecided with the direction of the transactions and did not open a position for sale.
Interchange is getting closer. Monitor the risk.
Head of analytical Department,
“International financial center”