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Huawei Tensions And Trade War Worries Burden Investors

The trade war has been factored into the market as investors adjust to the standoff between the two world’s largest economies.

The tech sector has borne the brunt of market volatility. The export restrictions placed on the Chinese Huawei Technologies has brought some weakness into the market. Arm Holdings, the chip design company has brought its business deals with Huawei to an end, which is further hampering sentiment.

This may further escalate trade tensions say, analysts. U.S. Secretary of State Mike Pompeo says that the Huawei tensions may intensify, as international companies are getting involved in it.

Meanwhile, the manufacturing sector seems to show a contraction in the eurozone, according to data from the IHS Markit PMI.

The Federal Open Market Committee has announced that interest rates will continue to remain steady. It is on a wait-and-see approach, towards the direction in the growth of the economy.

There is some positive news from the jobless benefits claims. Applicants for first-time jobless benefit in the U.S has fallen from 212,000 to 211,000 for the week ended May 18 on a week-on-week basis.

Treasury Secretary Steven Mnuchin who is heading the trade talks from the U.S. has said that there is no immediate plan to resume trade talks with China.

On Thursday, the Dow was down by 400 points on worries about the trade war.

U.S. oil has fallen by 4 percent and has gone down to $60 per barrel. The inventory data is weighing down on oil prices.

In China, the Shanghai Composite has gone down by 1.36 percent. Hong Kong’s Hang Seng has gone down by 1.58 percent. The Nikkei was down by 0.62 percent on Thursday.

The Indian Nifty was up by 0.7 percent and touched new highs on election results.

In Europe, Brexit worries continue to haunt Prime Minister Theresa May’s government. Further, the parliamentary elections are making markets jittery.

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Joyce Lattimer

With a background of M.Sc. in Space Studies, Joyce Lattimer sought to enhance her writing skills relating to Science articles. From being a naïve freelancer to a full-fledged Content Writer, Joyce has placed a firm foot in our organization. She has taken on the accountability of writing articles and blogs about the Science world that comprise, but not limited to, liftoff schedules, updates, launches, research, and so on. She also tutor kids anything relating to the field of Science.

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