The US stock market will fall due to the deterioration of relations between the US and China
The U.S. stock market is likely to open the bidding environment a decrease in the index due to the deterioration of trade relations with China in anticipation of a new round of negotiations with Canada.
US stocks fell on the eve, starting the week in negative territory after quite a long weekend waiting for a new round of negotiations on a new agreement is NAFTA. Already reached a similar agreement with Mexico, with Canada still being negotiated.
Market participants also fear that at the end of this week can be inserted new American tariffs on Chinese imports with a volume of $200 billion.
The major European stock indices on Wednesday also declined on concerns that Canada may not enter into a new agreement with the United States. Also disappointed market participants and statistics on the region’s economy. Thus, the composite index of business activity in the industry Eurozone in August rose to 54.5 points, while the market expected the level of 54.4 points. In addition, retail sales in the Eurozone in July decreased by 0.2%, which was worse than forecast.
Major Asian indexes on Wednesday have shown a significant decline due to concerns over the imposition of import duties in the U.S. on products from China. In addition, the poor were the data on business activity index in China. In August, the index fell to 51.5 points, which was the worst figure for the last 10 months.
Oil prices on Wednesday also falling more than 1% due to easing concerns about the fact that the storm “Gordon” will cover the work of drilling rigs in the Gulf of Mexico.
GK Forex Club