Trump collapses world stock markets

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No sooner had the markets to understand how to respond to first in 10 years, the fed rate cut, as the US President explained to everybody “policy of the party”. Donald trump has promised to introduce went on all Chinese imports in USA from the 1st of September in the amount of 10%. Such a radical step Washington, citing “the non-implementation of agreements with China on the purchase of agricultural products and delaying the process”.
Indeed, there is a belief that China is deliberately dragging out negotiations for 2020 in the hope the change of administration after the presidential elections and, obviously, it Angers trump. China has responded that “does not want trade war but ready for it.”
What does it mean? It is difficult to say. The Chinese government in early June, traditionally goes to a small informal holiday and so more clear comments we get at the end of next week, but until then we are waiting for the uncertainty which is worse than a definite negative.
Naturally, this decision has hit stock markets around the world. At the close of the DOW30 index lost more than 1%, the S&P500 fell 0.9% and NASDAQ closed the day down 0.79%. While rising, the share of payment systems and companies associated with sortovye solutions, but the manufacturers of microchips, Amazon, Apple, Alibaba and other companies are significantly cheaper and do not expect that the situation will change, especially if released strong data on the labor market. In this case, the decrease of rate of FRS of the USA in 2019 sure you can put a cross, and this is definitely not like the markets.
Naturally, the Russian stock market has slumped, especially on the background of falling oil prices. Several fell “LUKOIL” and “Gazprom”. NOVATEK looks really confident, like paper chemical sector, but to speak now about new purchases or balansirovka portfolios just not worth it. Will wait for a response from China.
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Dmitry Inogorodniy,
Expert
“International financial center”