US Stocks market and trade war with China.
It seems that US Stocks market has absorbed newly imposed by Trump 10% tariffs on China goods. Stocks Market has quickly recovered 60% of the recent drop. A trade war between the US and China become reality and the new norm.
But what is really happens?
As you can see from the image above the S&P500 futures is trading almost at the same price as before news about 10% tariffs. But how is that can be possible? Tariffs are still in place and there
Lets see another grapf:
That 2.5% is a China answer to Trump 10% tariffs. Very likely that Yuan will fall further to fully compensate 10% tariffs.
Generally, Investors are concerned that the rise in tariffs will increase prices on China goods and, in turn, will lead to a decrease in sales or/and profits of US firms. But if Yuan falls against Dollar it would compensate 10% tariffs and Trade war won’t affect US firms sales or/and profits this time.
Isn’t it beautiful?
Mr. Trump, what is your next move?
Like!! Great article post.Really thank you! Really Cool.