The US stock market not happy trade wars
Against the backdrop of contradictions in trade between the United States and other countries heavily inflicted damage on the us stock market. The Dow Jones index fell by 1.33% and the S&P 500 index lost 1.37 percent. Many market participants fear that the United States will prohibit the investment of Chinese companies in the American technology sector, and this step will further increase tensions between the US and China. The U.S. Treasury Department are actively developed conditions for companies, which if the share attributable to the owners of China will exceed 25%, they will not have the right to own a business in critical technological areas of the United States.
To include additional restrictions on export as it is a threat of leakage of important information. Therefore, there is a high probability that stock market indexes will continue to decline, as many investors try to limit risks and capture the position, transfer of funds in less risky assets, as scale trade war between the world’s economies will increase.
Great damage was done to the technology sector. Yesterday, it fell by 2.3%. Together, the pressure exerted by such companies as Advanced Micro Devices (NYSE: AMD) lost to 4.4%; Micron Technology (NYSE: MU) dropped by almost 7%; the General background was reflected in the industrial company: Harley-Davidson (NYSE: HOG) fell almost 6% because of the decision to transfer from the USA part of its production of motorcycles designed for European customers; Caterpillar (NYSE:CAT) fell 2.4%; and the Boeing company (NYSE:BA) lost 2.3%.
As for the Russian stock market, relative to yesterday, we observed a slight increase in 0,545% index Mosberg. The RTS index also gained of 0.688%. Apart from stabilising oil prices, the market also has a positive impact, the company showed good growth: Michela (MCX:MTLR) rose by 1.83%; RUSALplc – 1.27%; Sberbank (MCX:SBER) has grown by 0.96%; Gazproma (MCX:GAZP) is added 0.5%. In fact, geopolitical factors have little impact on the Russian market, and even to some extent strengthen the position of Russia with the countries which suffered from trade wars.
The expert of the company,
“International financial center”