The US stock market was hoping for positive but to no avail

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Yesterday, the US stock market is hoping for the positive, and it has become a leitmotif for all of the European stock markets. After the announcement of the possible resumption of the negotiating process, global investors felt a surge of adrenaline and rushed to buy undervalued from their point of view assets. Thanks to their efforts, global stock markets rose, including the market of South-East Asia and the Pacific region.
But the promise of future negotiations is nothing new, especially incorrect to speak about the completion of foreign trade and currency wars between the US and China. There is only the statement from China, which confirmed that the country has the contacts to renew the negotiations with the United States.
However, the stock markets of the US and Europe grew. Again they are only interested in China and America. Meanwhile, the world is not all as good as everyone would like. For example, the Agency Standard & Poor’s downgraded the credit rating of Argentina’s foreign and local currency to the level of “selective default”. On the one hand, it was expected, on the other, the fact can not be considered positive.
In China is not only preparing for resumption of the negotiation process, but also to possible black lists of American companies operating in China. Approval Wall Street Journal, Chinese officials are studying the production chain imports of Chinese IT companies, to probably consider who and in what volumes leads this activity.
As we understand it, American companies are blacklisting threatens the loss of market access of their products to China. In addition, if this happens, American business will be doomed to additional costs. The loss of the Chinese market means that the US will have to study the relocation of production chains in other countries and implement it in practice. It is not only the loss share of the profit, but also significant costs.
Meanwhile in America, brewing discontent with Donald trump. Already Bloomberg says for the first time since the election of the current President more and more Americans talking about the deterioration of the economy. In a recent study of economic confidence in the United States, conducted by the Agency, it is argued that ordinary Americans are not only less optimistic about the situation, but even accused the U.S. President in his pessimistic moods. Respondents believe that its policy brings America more harm than the promised good.
In the country again discuss the economic achievements of the administration of the President. Meanwhile he thought about the recovery of Beijing debt on bonds issued by the Chinese emperors. At the same time China is not going to recognize the continuity of the debt, but Donald trump, who spoke with the holders of securities, this moment is not interested.
Roman Blinov,
Head of analytical Department,
“International financial center”